The Swedish Supreme Court’s recent referral of Danske Bank to the CJEU reopens the Skandia debate on how the VAT grouping rules should apply in complex cross-border scenarios across the EU, as Mark Agnew and Philippe Gamito (Baker McKenzie) explain.
The state of play on Skandia
The CJEU’s 2014 judgment in Skandia America Corp (Case C-7/13) was the first case to address the impact of VAT grouping in cross-border flows of services. To briefly recall the facts a Swedish branch of the US head office of Skandia America was member of a Swedish-based VAT group. The US head office recharged IT costs bought from third parties to its Swedish branch with a mark-up of 5%. The Swedish branch did not account for Swedish VAT on the grounds that these supplies were made within the same legal entity and should thus have been ignored for VAT purposes in accordance with FCE...
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The Swedish Supreme Court’s recent referral of Danske Bank to the CJEU reopens the Skandia debate on how the VAT grouping rules should apply in complex cross-border scenarios across the EU, as Mark Agnew and Philippe Gamito (Baker McKenzie) explain.
The state of play on Skandia
The CJEU’s 2014 judgment in Skandia America Corp (Case C-7/13) was the first case to address the impact of VAT grouping in cross-border flows of services. To briefly recall the facts a Swedish branch of the US head office of Skandia America was member of a Swedish-based VAT group. The US head office recharged IT costs bought from third parties to its Swedish branch with a mark-up of 5%. The Swedish branch did not account for Swedish VAT on the grounds that these supplies were made within the same legal entity and should thus have been ignored for VAT purposes in accordance with FCE...
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