- Management Services Classification: Advocate General Kokott determined that the various management services provided by Högkullen AB to its subsidiaries do not always qualify as unique services, making it challenging to establish a comparable value for VAT purposes.
- Tax Authority’s Valuation Method: The Swedish tax authorities assessed Högkullen AB’s remuneration for services based on total expenditures (SEK 28 million), arguing that these services constituted a single supply and were below the open market value.
- Partial Applicability of VAT Directive Provisions: The Advocate General noted that only about half of Högkullen AB’s output services (approximately SEK 14 million) could be subject to Article 80(1)(a) of the VAT Directive, indicating that the VAT-related tax revenue risk pertains only to this specific amount.
Source Taxlive
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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