Can Spanish Taxpayers Still Rely on the FCE Bank Principle?

• Spanish taxpayers are questioning whether they can still rely on the FCE Bank principle
• Services between a branch and its head office are considered outside the scope of VAT
• The unity of the taxable person concept means that a branch and its head office are treated as one for VAT purposes
• Recent CJEU judgments on VAT grouping have raised questions about the treatment of branches and head offices as separate entities for VAT purposes
• The conclusion reached in these judgments may not be relevant in scenarios without VAT grouping
• The interpretation of VAT rules in Spain may differ from other countries like the United Kingdom

Source: insightplus.bakermckenzie.com

See also in our library of ECJ Cases

• Taxable person (Art. 9)
  • Transactions between head offices and branches
• VAT Grouping (Art. 11)
  • Focus on Supplies of services between Head Office and its Branch, whereby one of the parties is part of a VAT Group
• C-210/04 (FCE Bank) – A fixed establishment is not a legal entity distinct from the business itself

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Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.