- The BFH held that a VAT group existed between N-GmbH and O-GmbH despite N-GmbH controlling only 60% of the voting rights, because it held a majority shareholding and organizational integration was particularly strong.
- The Court confirmed that, where shareholder resolutions require a two-thirds majority, majority shareholding alone would normally not satisfy financial integration; however, strong organizational integration can compensate for weaker financial integration.
- The BFH relied on its 18 January 2023 case law, under which majority shareholding can suffice even with only 50% of voting rights, if organizational integration is sufficiently strong.
- In this case, the identity of managing directors and N-GmbH’s role in appointing the sole managing director of O-GmbH were key factors supporting VAT grouping.
Source: kmlz.de
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.
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