In a most recent judgment, the General Court of the EU decided that national legislation requiring a 100 percent ownership interest to qualify for a VAT group to be incompatible with EU law unless that condition is a necessary and appropriate measure to achieve the objectives of combating tax evasion or avoidance. The Court also found that taxpayers cannot directly invoke the provisions of the VAT Directive.
An ECJ advocate general has suggested the court hold for a second time that Germany must allow a non-resident a deduction on the same terms as a resident for a pension paid to his father in consideration of his early assumption of joint ownership in the family business.
