Commission v UK - Holding Companies can be included in VAT groups

United Kingdom

The Court of Justice of the European Union has ruled that non-taxable persons can be included in VAT groups and has thus confirmed current practice in the UK.

History of the case

In 2009 the Commission announced infringement proceedings against eight member states (including the UK) on the grounds of failing to correctly implement the Sixth Directive, thereby allowing non-taxable persons to be members of VAT groups.

Commission v Ireland (C-85/11) was used as a test case and the other proceedings have been judged without hearings. The judgments have now been released and follow the decision in Ireland.

Please click here to view our previous Law-Now "Commission v Ireland - Holding Companies can be included in VAT groups" for more detail.