The European Court of Justice has decided C-868/19 that partnerships can be considered closely bound to a VAT group by a financial link even if some partners of that partnership are not themselves linked to the VAT group. According to the court, a partnership is linked to the VAT group as soon as the head of the VAT group, with its statutory right to vote, can dominate the partnership. On the other hand, according to the opinion of the V. Senate of the Highest German Tax Court and of the German Ministry of Finance, a partnership can only be considered a controlled company in a VAT group if all shareholders are financially integrated into the controlling company
Source: bakermckenzie.com
See also
- ECJ C-868/19 (M-GmbH) – Decision – Members of a partnership and the head entity can form a VAT group
- Roadtrip through ECJ Cases – Focus on ”VAT Grouping” (Art. 11)
Join the Linkedin Group on ECJ VAT Cases, click HERE
Latest Posts in "European Union"
- Boost your knowledge of EU’s VAT in the Digital Age (ViDA)
- Comments on ECJ Case C-121/24: Ruling on Joint VAT Liability When Main Debtor Loses Legal Status: Key Issues Analyzed
- EU Proposes Direct EPPO and OLAF Access to VAT Data to Combat Cross-Border Fraud
- EU Customs Reform 2028: Why Unified VAT Technology Is Essential for Seamless Compliance and Reporting
- Briefing document & Podcast: VAT in the Digital Age (ViDA) – Platform Economy
