Implementation of the cost sharing exemption in Luxembourg
In European Commission v Luxembourg (Case C-274/15) (6 October 2016) the Advocate General found that Luxembourg legislation on the cost sharing exemption was in breach of the Principal Directive.
This was an infringement case brought by the European Commission against Luxemburg over its implementation of the EU cost sharing exemption. The issue was whether Luxembourg had gone too far thus hindering competition and giving an advantage to businesses established in Luxembourg.
The Advocate General considered that in exempting services which are not directly linked to the exempt (or non-taxable) activity of a group company Luxembourg legislation did infringe the Principal VAT Directive art 2(1)(c) and art 132(1)(f).
Furthermore the Advocate General thought that the administrative practice recorded in published guidance and which consisted in the event of a purchase by a group member for the benefit...
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Implementation of the cost sharing exemption in Luxembourg
In European Commission v Luxembourg (Case C-274/15) (6 October 2016) the Advocate General found that Luxembourg legislation on the cost sharing exemption was in breach of the Principal Directive.
This was an infringement case brought by the European Commission against Luxemburg over its implementation of the EU cost sharing exemption. The issue was whether Luxembourg had gone too far thus hindering competition and giving an advantage to businesses established in Luxembourg.
The Advocate General considered that in exempting services which are not directly linked to the exempt (or non-taxable) activity of a group company Luxembourg legislation did infringe the Principal VAT Directive art 2(1)(c) and art 132(1)(f).
Furthermore the Advocate General thought that the administrative practice recorded in published guidance and which consisted in the event of a purchase by a group member for the benefit...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")