- The CJEU held that Denmark’s absolute 100% ownership requirement for VAT grouping generally exceeds what is needed to establish a “close financial link” under Article 11 of the VAT Directive.
- The Court rejected the idea that a mere potential loss of VAT revenue is enough, by itself, to justify such a restriction as an anti-abuse measure.
- It left it to the Danish courts to decide whether the rule can still be justified as a necessary and proportionate measure to combat VAT fraud or avoidance.
- The Court confirmed that Article 11 of the VAT Directive has no direct effect, so taxpayers cannot rely on it directly to override contrary national law.
Source: dlapiper.com
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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