In Skandia, the CJEU ruled that the Swedish branch of a US-based head office was a separate taxable person insofar as the branch was a member of a Swedish VAT group. This meant that supplies of services from the foreign head office to its local branch were in the scope of VAT, resulting in the branch having to reverse charge VAT in Sweden. The subsequent implementation of this decision across the EU has differed greatly and has caused difficulties for taxpayers in assessing the VAT liability of their intra-entity supplies across the EU. 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.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
In Skandia, the CJEU ruled that the Swedish branch of a US-based head office was a separate taxable person insofar as the branch was a member of a Swedish VAT group. This meant that supplies of services from the foreign head office to its local branch were in the scope of VAT, resulting in the branch having to reverse charge VAT in Sweden. The subsequent implementation of this decision across the EU has differed greatly and has caused difficulties for taxpayers in assessing the VAT liability of their intra-entity supplies across the EU. 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.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
