- The case involves the application of VAT laws, specifically Article 11 of the VAT Directive 2006 and Article 49 TFEU
- The issue is whether services provided by foreign parent and sister companies to members of a Dutch VAT group should be subject to VAT
- The territorial limitation of the VAT group to companies within one member state is challenged for being contrary to the freedom of establishment and services under EU law
- The argument is that the territorial restriction results in unequal treatment of affiliated companies based outside the member state compared to those within, affecting VAT charges on services
- The claimant is not seeking to form a cross-border VAT group but is contesting the VAT charged on services from German companies, which is not fully deductible in the Netherlands
- The claim relies on the per-element approach accepted by the Dutch Supreme Court, which allows for the assessment of each beneficial element of the VAT group regime within the territory of the respective member state
- The claimant argues there is no objective difference between a VAT group consisting only of Dutch companies and one that includes companies in both the Netherlands and Germany, based on the principle of fiscal neutrality
Source: uitspraken.rechtspraak.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.
