EU pushes for Skandia implementation
- Jan 6, 2017 | Richard Asquith
The European Commission’s VAT Committee has called for a full imposition of the Skandia tax case.
The European Court of Justice case considered whether EU transactions between a foreign bank branch and its headquarters should be including in VAT groupings. Currently, see table below, there are significant variations between member states. The VAT Committee’s recommendations are non-binding.
|Member state||Latest position|
|Cyprus, Finland, Germany, Spain (advanced method)||The intention of these member states is uncertain|
|Austria, Ireland, the Netherlands, UK||It is not expected that these member states to apply ‘establishment only’ VAT grouping to create intra-establishment supplies when the establishment in the member state is VAT grouped|
|Italy, Romania, Spain (basic method)||These types of ‘VAT grouping’ are purely administrative, treating each member as a separate taxable person and just amalgamating their VAT figures on a single return.|
|Belgium, the Czech Republic, Denmark, Estonia, Hungary, Latvia, Slovakia, Sweden||It is expected that these member states to apply ‘establishment only’ VAT grouping to create intra-establishment supplies when the establishment in the member state is VAT grouped|
|Bulgaria, Croatia, France, Greece, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovenia||These member states do not have VAT grouping|