CJEU confirms that supplies between VAT groups are outside the scope of VAT.
In Finanzamt T II v S (Case C184/23) (11 July) the CJEU held that supplies between members of an EU VAT group were outside the scope of VAT irrespective of whether the effect of VAT grouping was a ‘loss of tax’.
The taxpayer (S) was the controlling company of a university medical department and another company (U). They were all included in a German VAT group.
U provided various services to S including cleaning laundry and passenger transport in respect of the university medical department building. The building was used for a mixture of taxable business activities and non-economic teaching activities.
Initially the German tax authorities took the view that U’s services were not subject to VAT as they were supplied within a VAT group. However it also argued that where the services were carried out in respect...
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CJEU confirms that supplies between VAT groups are outside the scope of VAT.
In Finanzamt T II v S (Case C184/23) (11 July) the CJEU held that supplies between members of an EU VAT group were outside the scope of VAT irrespective of whether the effect of VAT grouping was a ‘loss of tax’.
The taxpayer (S) was the controlling company of a university medical department and another company (U). They were all included in a German VAT group.
U provided various services to S including cleaning laundry and passenger transport in respect of the university medical department building. The building was used for a mixture of taxable business activities and non-economic teaching activities.
Initially the German tax authorities took the view that U’s services were not subject to VAT as they were supplied within a VAT group. However it also argued that where the services were carried out in respect...
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:
