Comments on ECJ C-527/23: Will the CJEU judgment facilitate the settlement of capital groups?

• VAT Deduction Affirmed: The European Court of Justice ruled on December 12, 2024, that tax authorities cannot refuse VAT deductions for services acquired by a company within a group, provided those services were used for the company’s own taxable transactions.
• Documentation Requirements: Companies are advised to maintain detailed documentation that clearly establishes the connection between the services received and their taxable activities, ensuring compliance with VAT neutrality principles.
• Tax Authority Limitations: The ruling emphasizes that tax authorities must objectively assess the necessity of services for VAT deductions, without imposing subjective criteria or assumptions regarding the allocation of costs among group entities.

Source Prawo

See also

• C-527/23 (Weatherford Atlas Gip) – Refusal of the right to deduct if services are not used for taxable transactions

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