Tax & Legal

Categories: All (21 found)

1. 11.07.2024

   ECJ: Transactions between members of VAT group not taxable

   Following yet another preliminary ruling regarding the German regulations of consolidated tax groups for VAT purposes the European Court of Justice held that a VAT group’s internal transactions do not fall within the scope of value added tax and remain non-taxable.

   Categories: European Court of Justice

   Keywords: VAT group, intracompany transaction
2. 17.05.2024

   ECJ: Transactions between members of VAT group taxable?

   In a case previously dealt with by the European Court of Justice the Supreme Tax Court saw the need for yet another preliminary ruling regarding the current German VAT situation of non-taxable intra-group transactions. In his Opinion the Advocate General takes the view that a VAT group’s internal transactions do not fall within the scope of value added tax.

   Categories: European Court of Justice

   Keywords: VAT group, intracompany transaction
3. 27.03.2023

   Supreme Tax Court: Two follow-up decisions on VAT group requ ...

   In two current judgments the Supreme Tax Court has commented on the German VAT Group requirements following preliminary rulings which the court had referred to the ECJ in 2109 and 2020 and on which the ECJ provided answers in its judgments of December 2022. In one decision the Supreme Tax Court changed its case law on financial Integration. In the second case, the Supreme Tax Court saw the need for yet another preliminary ruling from the ECJ regarding the VAT situation of intra-group transactions.

   Categories: Supreme Tax Court cases

   Keywords: VAT group, financial integration
4. 01.03.2023

   VAT group regime introduced in France effective 2023

   France has chosen to exercise the option of Article 11 of the VAT Directive as of 1 January 2023 and to provide for the establishment of a VAT group if certain requirements are met. With this new optional regulation in force France joins most other EU countries providing for one VAT entity for the whole group and a single VAT registration in this respect.

   Categories: PwC Reports

   Keywords: VAT group
5. 01.12.2022

   ECJ with two landmark decisions on German VAT group requirem ...

   Today, the European Court of Justice (ECJ) published two long-anticipated decisions dealing with German VAT groups. Following our preliminary, quick review of the decision, a “crash” of the current VAT group concept has not transpired. Whilst on the one hand, the financial integration in a VAT group may be eased in future, on the other hand, the ECJ addresses an “independence” of the VAT group affiliates – the practical impact of which is unclear for the time being.

   Categories: European Court of Justice

   Keywords: VAT group, financial integration
6. 13.09.2022

   Liability of the Controlled Company arising after the termin ...

   In a recent case, the Supreme Tax Court decided that the liability of a controlled company (subsidiary) in a tax consolidation group (“Organschaft”) for the tax liability of its controlling company (parent in the Organschaft) is not necessarily limited to such taxes which arose during the existence of the Organschaft. The controlled company may be liable to the extent that the parent is required to pay tax on the controlled company’s turnover and may deduct input tax amounts from invoices for services obtained by the controlled company.

   Categories: Supreme Tax Court cases

   Keywords: VAT group, secondary liability, tax cons ...
7. 28.01.2022

   German VAT group regime tested before the ECJ

   Pending before the ECJ are currently two questions of relevance regarding the German regulation of consolidated tax groups for VAT purposes (VAT group). In her Opinion on both cases the Advocate General takes the view that the sole taxable person is, in principle, the VAT group itself and not (as under German VAT law) the controlling member of the group.

   Categories: European Court of Justice

   Keywords: VAT group, taxable person, controlling m ...
8. 16.04.2021

   VAT group: ECJ defines eligibility of partnerships as contro ...

   The ECI held that it is from the outset not compatible with EU-Law if the possibility for a partnership to form a VAT group - in addition to the controlling company – is limited to those partners in the partnership whose business is financially integrated into that of the parent. Such a restriction can only be justified by a specific need to prevent abuse.

   Categories: European Court of Justice

   Keywords: VAT group, partnership, controlled compa ...
9. 25.03.2021

   ECJ: Services between head office and foreign branch may be ...

   The ECJ held that services by an EU head office, who is part of a VAT group, to its foreign branch are in general subject to VAT if the cost of such services are charged to the branch. For VAT purposes head office and its branch located in another Member State must be regarded as separate taxable persons.

   Categories: From Europe

   Keywords: VAT group, Foreign branch, intracompany ...
10. 29.06.2017

    VAT grouping and input VAT deduction for holding companies

    Following decisions of the European Court of Justice and the German Supreme Tax Court the Federal Finance Ministry has issued guidelines on the VAT grouping and the input VAT deduction for holding companies. In a special VAT Newsflash our tax experts take a closer look on the situation as a whole.

    Categories: Official Pronouncements

    Keywords: VAT group, holding company, input VAT de ...
11. 11.03.2016

    GmbH & Co. KG can be member of VAT group

    The Supreme Tax Court has held that a GmbH & Co. KG can rank as a corporation for the purposes of entitlement to membership as a subsidiary of a VAT group.

    Categories: Supreme Tax Court cases

    Keywords: VAT group, GmbH & Co. KG, corporation
12. 20.07.2015

    VAT group exclusion by legal entity only to prevent abuse

    The ECJ has held that German provisions excluding partnerships from VAT groups altogether and only admitting closely held subsidiaries are in conflict with the Sixth Directive and can only be justified by a specific need to prevent abuse.

    Categories: From Europe

    Keywords: VAT group
13. 26.03.2015

    Partnerships to be eligible for VAT groups?

    An ECJ advocate general has suggested that management holding companies be allowed an input tax deduction in proportion to the taxable/total turnover of their subsidiaries and that partnership subsidiaries should not be excluded from joining a VAT Group.

    Categories: From Europe

    Keywords: VAT group, partnership, Shipping, manage ...
14. 07.05.2014

    Organisational integration of a VAT group

    The finance ministry has amended the VAT group provisions of its VAT Implementation Decree to take account of recent European and Supreme Tax Court cases.

    Categories: Official Pronouncements

    Keywords: VAT group, Organisational integration, g ...
15. 05.03.2014

    Partnerships to join VAT groups?

    The Supreme Tax Court has asked the ECJ for a ruling on the determination of the amount of deductible input VAT of holding companies with taxable outputs and on the conditions for joining VAT groups.

    Categories: Supreme Tax Court cases

    Keywords: Holding, VAT group, partnership
16. 25.04.2013

    Non-business entity may be member of a VAT group - II.

    The ECJ has followed up its April 9 judgment with a further six decisions against the Commission on the same lines. It has also held that a member state may restrict a VAT group to a specific industry in the interests of curbing evasion and fraud.

    Categories: From Europe

    Keywords: VAT group
17. 09.04.2013

    Non-business entity may be member of VAT group

    The ECJ has upheld Irish legislation allowing a non-business entity, such as a holding company, to be a member of a VAT group.

    Categories: From Europe

    Keywords: VAT group, holding company, non-business
18. 12.03.2013

    Organisational integration for VAT groups newly defined

    The finance ministry has redefined the organisational integration requirement for a VAT group.

    Categories: Official Pronouncements

    Keywords: Organschaft, VAT group, Organisational i ...
19. 10.01.2012

    Sale of shares as sale of business

    The finance ministry has issued a decree to the effect that the sale of shares in a company can be non-VAT-able as the sale of a business, if the subsidiary meets the economic integration qualification for joining a VAT group with the acquirer.

    Categories: Official Pronouncements

    Keywords: Sale of shares, VAT group, sale of busin ...
20. 26.10.2011

    Organisational integration of VAT group must be enforceable ...

    The Supreme Tax Court has held that a subsidiary is too independent to join a VAT group if its sole director is able to block his own removal from office.

    Categories: Supreme Tax Court cases

    Keywords: VAT group, Organisational integration
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