Standpoint on VAT grouping and Public Legal Entities in the Netherlands

• The Knowledge Groups on general VAT and OVI have published a position on whether a public legal entity can be part of a fiscal unity.
• The position also addresses whether a public legal entity, as part of a fiscal unity, can independently perform activities or transactions in the sense of Article 13 of the VAT Directive.
• The position states that a public legal entity can be part of a fiscal unity, even if its primary actions are considered government actions.
• It also states that a public legal entity, as part of a fiscal unity, can still perform independent activities or transactions in the sense of Article 13 of the VAT Directive.
• The position discusses the different spheres of a municipality as a public legal entity for VAT purposes: government actions, VAT actions, and non-economic actions.
• It explains that a public legal entity can be part of a fiscal unity based on Article 11 of the VAT Directive, which allows for the grouping of financially, economically, and organizationally connected entities.
• The position concludes that the participation of a public legal entity in a fiscal unity does not affect its legal form or its ability to independently participate in economic transactions.
• It also states that the public legal entity can still be considered as performing government actions in the sense of Article 13 of the VAT Directive.

Source: kennisgroepen.belastingdienst.nl

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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