BFH Decision: No VAT on Intragroup Services for Nonbusiness Reasons – Key VAT Ruling

• BFH ruled no VAT on intragroup services for nonbusiness reasons
• Decision dated 29 August 2024 addressed German VAT grouping rule
• Controlling entity of VAT group considered sole taxable person
• Intragroup supplies not subject to VAT
• Taxable benefit in kind not applicable if controlled entity provides services for compensation
• Previous BFH ruling on benefit in kind taxation now considered obsolete
• Criteria for VAT group must involve personal, economic, and financial integration
• Intragroup services not taxable if controlling entity receives services for remuneration

Source: taxathand.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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