ECJ Danske Bank – Services between head office and branch attract VAT

In its ruling of 11 March (C-812/19), the European Court of Justice (ECJ) decided that services rendered by the Danish head office of the Danske Bank to its Swedish branch attract VAT. This was based on the fact that the Danish head office had joined a Danish VAT group. As a result of this decision intercompany cross-border services are inside the scope of VAT, if either the head office or the branch are a member of a VAT group. This may result in VAT leakage. This article discusses this ruling and its impact in practice.

Source: loyensloeff.com

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