CJEU Clarifies VAT Minimum Tax Base for Managing Holding Companies in EU Law Context

The European Court of Justice clarified the scope of the minimum tax base for managing holdings.
A Swedish case required the court to determine if all expenses of a taxpayer can be included in the calculation of the normal value.
The holding company invoiced its subsidiaries approximately 2.3 million Swedish Krona in 2016 using the Cost-Plus Method.
Total expenses of the holding were about 28 million Swedish Krona, with half subject to VAT and the rest VAT-exempt or non-taxable.
The tax authority believed the holding’s charges were below normal value and increased the VAT base to 28 million Swedish Krona.
Advocate General Juliane Kokott argued against automatically including all expenses in the tax base.
The court ruled that the tax authority’s approach was incorrect, supporting the Advocate General’s view.

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.