Majority of voting rights as a requirement for the financial interconnectedness requirement is against EU law.
On December 1, 2022, the Court of Justice of the EU (“ECJ”) delivered two judgments regarding the application of the VAT group in Germany (C-141/20 and C-269/20).
In this alert we take a closer look at case C-141/20 (Norddeutsche Gesellschaft für Diakonie) (“NGD”) and we briefly consider case C-269/20 (Finanzamt T). It follows that a Member State may not require that a majority of voting rights (control) be held in another company in order to form a fiscal unity for VAT purposes. In addition, the CJEU discusses the independence for VAT purposes of the parts of the fiscal unity.
Source Deloitte
See also
- ECJ C-141/20 (Norddeutsche Gesellschaft für Diakonie mbH) – Judgment – VAT group: Controlling member may be the only representative of a VAT group
- C-269/20 (Finanzamt T) – Judgment – Controlling company may be the only taxable person of a VAT group
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