- The Italian Supreme Court held that VAT group relief can apply even with indirect joint control.
- In the case, parent A indirectly controlled company D through two 100%-owned subsidiaries, each owning 50% of D.
- The Court said “control” for VAT group purposes can be direct or indirect, including control exercised through a chain of controlled companies.
- It interpreted the rule broadly, relying on EU VAT law, which focuses on financial, economic, and organizational links rather than strict capital thresholds.
- Therefore, the fact that no single company owned more than 50% of D did not prevent VAT group treatment.
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.
