- The BFH has affirmed the CJEU’s ruling that a VAT group exists between a public law foundation and a limited liability company, confirming that intra-group transactions among its members are exempt from VAT, even if one party has input tax deduction restrictions.
- The ruling clarifies that the non-business activities of a controlling company are included within the VAT group, meaning that services provided by a controlled company to the non-business segment of the controlling company are also exempt from VAT.
- This confirmation aligns the German VAT group concept with EU law and is expected to benefit taxpayers in sectors such as finance, insurance, and healthcare, providing much-needed clarity on the taxability of intra-group supplies.
Source DLA Piper
See also Roadtrip through ECJ Cases – Focus on ”VAT Grouping” (Art. 11)
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