Head Office’s Group VAT Membership Separates Subjective Unity Among Branches in EU States

• The main office joining a group regime breaks the subjective unity among branches.
• Joining an EU VAT Group by the parent company ends the subjective identity with its permanent establishments.
• Branches are considered separate taxable entities from the parent company and the VAT Group.
• Transactions between branches may be relevant for tax purposes.
• This clarification was provided by the Revenue Agency in response to inquiry number 216.
• The case involves a foreign company ALFA and its branches ALFA1 in Italy and ALFA2 in the UK.
• The Italian branch receives IT and back-office services from the UK branch.

Source: eutekne.info

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.