Tax & Legal

Tax & Legal

VAT group: ECJ defines eligibility of partnerships as controlled companies

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. Continue reading

ECJ: Services between head office and foreign branch may be subject to VAT

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. Continue reading

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. Continue reading