Recent VAT developments that matter, examined by Bryn Reynolds and Gary Barnett (Simmons & Simmons).
Skandia principle extended
In Danske Bank A/S v Skatteverket (Case C‑812/19) the CJEU has held that the principle established in the Skandia case (Case C‑7/13) applies equally to a situation involving a principal establishment which is part of a VAT group and its non-VAT grouped branch established in a different member state.
The Skandia case concerned supplies of services between a separately VAT grouped fixed establishment and the company of which it formed part. The CJEU held that in that scenario the well-known principle from FCE Bank (Case C‑210/04) that an intra-entity transaction does not give rise to a supply does not apply and there is no disregard for a transaction between a head office and its branch.
The result of this case was that the legal fiction of the VAT group...
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Recent VAT developments that matter, examined by Bryn Reynolds and Gary Barnett (Simmons & Simmons).
Skandia principle extended
In Danske Bank A/S v Skatteverket (Case C‑812/19) the CJEU has held that the principle established in the Skandia case (Case C‑7/13) applies equally to a situation involving a principal establishment which is part of a VAT group and its non-VAT grouped branch established in a different member state.
The Skandia case concerned supplies of services between a separately VAT grouped fixed establishment and the company of which it formed part. The CJEU held that in that scenario the well-known principle from FCE Bank (Case C‑210/04) that an intra-entity transaction does not give rise to a supply does not apply and there is no disregard for a transaction between a head office and its branch.
The result of this case was that the legal fiction of the VAT group...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
