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Comments to ECJ C-141/20 & C-269/20: ECJ takes a position on the VAT group

Statements of the ECJ:

  • The German rules on the tax group do not represent any national special law based on a typical consideration of the characteristic of independence.
  • Instead of the controlling company, any company in the tax group can, in principle, represented by the tax authorities, but it is also permissible – as implemented in German law – to regard only the controlling company as the “sole taxpayer”.
  • The individual controlled companies lose their status as taxpayers as a result of being integrated into the tax group.
  • The establishment of a tax group does not necessarily require a subordinate relationship between the controlled company and the controlling company.
  • If the controlling company holds a majority stake in the controlled company, acceptance of the financial integration does not also require a majority of voting rights.

Source WTS

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