Advocate General at CJEU issues Opinion on transactions between a head office and a fixed establishment that is part of a VAT group

On May 8, 2014 Advocate General (“AG”) Wathelet issued his Opinion in the Skandia America Corporation case. He concluded that transactions between a foreign head office and a fixed establishment that is part of a VAT group are outside the scope of VAT. However, it appears that the AG considers this an undesirable situation, because it means that transactions between the head office and the fixed establishment, as well as transactions within the VAT group, are not subject to VAT. The AG suggests a number of alternatives, under which the transactions would be subject to VAT.

via Advocate General at CJEU issues Opinion on transactions between a head office and a fixed establishment that is part of a VAT group | Kelvin Hulsebos.

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