Comments on ECJ C-808/23: Intra-Group Charges Valuation

Högkullen AB, a Swedish real estate management parent company, provided services to its VAT-exempt subsidiaries on a cost-plus basis, but did not account for certain shareholder and accounting costs when calculating intra-group charges.
The Swedish tax authorities argued that Högkullen’s intra-group supplies constituted a single supply with a consideration below the open market value, which should equal at least the full cost of providing the service due to the lack of comparable market prices.
The Advocate General concluded that Högkullen’s services were distinct, suggesting that market comparison prices could be determined, and emphasized that only VAT-subjected expenditures should be considered in calculating the open market value, with appropriate allocation for capital costs.