Comments on ECJ C-808/23 – AG Kokott on the concept of ‘open market value’ and single vs. multiple supplies

• AG Kokott’s Opinion: Advocate General Kokott issued an opinion on the ‘open market value’ and single vs. multiple supplies in the Högkullen AB case (C-808/23).
• Case Background: The case involves a holding company providing various intra-group services to subsidiaries, with disputes over VAT treatment and the determination of ‘open market value.’
• Key Issues: The opinion addresses whether services should be considered unique or multiple for VAT purposes and if shareholder and capital-raising costs should be included in the taxable amount.
• AG Kokott’s Stance: AG Kokott argues that distinct services should be assessed separately for VAT, and only expenditures subject to VAT should be included in the ‘open market value.’
• Implications: The opinion highlights complexities in VAT treatment of transfer pricing charges and intra-group transactions, with potential impacts on exemptions and place of supply rules.

Source

• Deloitte
• Grant Thornton

See also

• ECJ C-808/23 (Högkullen) – AG Opinion – Management services from a holding company to subsidiaries can have comparable values under Article 72

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