After two recent ECJ decisions, doubts arose about the taxability of transactions between VAT group members. The ECJ had previously ruled that the German VAT grouping was EU-compliant, but in Norddeutsche Gesellschaft für Diakonie, it found certain aspects of the German rules non-compliant. In Finanzamt T I and Finanzamt T II, the ECJ had to determine whether cleaning services provided by a company to a university foundation within a VAT group were subject to VAT, as the German tax authorities had found. The ECJ decided in Finanzamt I that a VAT group can be considered a single taxable person, but services provided for non-economic activities may be subject to VAT.
Source Grant Thornton
See also
- ECJ C-184/23 (Finanzamt T) – Judgment – Supplies within VAT group are outside scope of VAT even if input VAT is limited
- Roadtrip through ECJ Cases – Focus on ”VAT Grouping” (Art. 11)
- C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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