Global

Details

  • 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




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