Contrary to the provisions of the EU VAT Directive, the present German fiscal unity concept for VAT purposes (VAT grouping) considers the parent company as the taxable person rather than the VAT group itself. Therefore, from a German perspective, services between the two are still regarded as non-taxable intra-company transactions. It could therefore reasonably be argued not to apply the Danske Bank judgment (C-812/19) for the time being, specifically in cases where a parent company or permanent establishment located in Germany receives services from or provides services to a part of the business establishment located abroad.
Source: PwC DE
