- CJEU considered the status of controlling members of German VAT groups in two judgments in 2022
- U-GmbH provided cleaning services to its parent foundation S, which ran a university teaching hospital
- AG Rantos believed that the cleaning services should not be treated as supplies of services as they occurred between two members of a VAT group
- Intra-VAT group supplies should be regarded as a flow of funds, not taxable supplies
- VAT groups exist to simplify administration and prevent abuse, as well as support organizational fiscal neutrality
- German tax authorities’ concerns about tax loss were considered misplaced by AG Rantos
- U’s services to S were not within the scope of VAT according to AG Rantos.
Source: taxscape.deloitte.com
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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.
