The Netherlands has published an updated policy notice on fixed establishments for VAT purposes. As expected, the Decree (available in Dutch) has updated the notice in in line with the CJEU ruling in Danske Bank. Transactions between a head office and its branch will no longer be outside the scope of Dutch VAT if either the head office or the branch is part of a VAT group in another EU Member State. If no VAT groups are involved, then transactions between head office and branch will remain outside the scope of VAT, applying the CJEU’s judgment in FCE Bank. The Decree will enter into force on 1 January 2024, which is expected to give affected businesses time to prepare for the change.
Source Deloitte
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