• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 4/26/2013

Netherlands - VAT group may include “top holdings,” CJEU concludes 

April 26: The Court of Justice of the European Union (CJEU) held that non-taxable persons—such as “top holdings”—can be part of a value added tax (VAT) group. Commission v. Netherlands, C-480/10 (25 April 2013)

At issue was the Dutch policy which allows “top holdings” to be included in a VAT group. The European Commission considered this position to be contrary to the VAT Directive. However, the CJEU found that non-taxable persons, such as top holdings, can be part of a VAT group.

With the judgment, it may be possible in some situations for the composition of the VAT group to be expanded and to be broader than was previously thought possible.

Read an April 2013 report prepared by the KPMG member firm in the Netherlands: CJEU: Non-taxable persons can be part of a VAT group

©2013 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now

Contact us