- The Supreme Court rules that the territorial limitation of the VAT group regime is not a prohibited restriction of EU freedoms
- The limitation is an essential part of the VAT group regime, not just an element
- X c.s., a VAT group based in the Netherlands, mainly provides insurance services and is part of a cross-border group with a German parent company
- X faces additional tax due to the territorial limitation of the VAT group, which would not exist without this limitation
- The Court of Justice of the EU has previously stated that a member state cannot include entities outside its territory in a VAT group
- X sought to obtain a specific benefit of the Dutch VAT group regime in a cross-border situation but was unsuccessful
- The territorial limitation is justified by a compelling reason of public interest and is appropriate and proportionate to maintain the objectives pursued
- The Supreme Court finds X’s appeal unfounded as the territorial restriction upholds the coherence of the common VAT system and the distribution of taxing rights and fiscal sovereignty among member states
Source: taxlive.nl
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.
