Advocate General Jääskinen delivered his opinion on 27 November in EC v Ireland (CJEU Case C-85/11). He concluded that the practice of permitting non-taxable persons to be members of a VAT group does not infringe the Principal VAT Directive or any EU principle. Judgment is expected in 2013. Given the robust and comprehensive nature of the opinion, taxpayers can feel confident of a favourable judgment. Consequently, passive holding companies, non-trading, dormant or shell companies, and companies which act as trustees can feel optimistic that they can continue to enjoy membership of VAT groups.
