Skandia VAT grouping ruling forces accounting changes

HMRC has issued a briefing on the recent Court of Justice of the European Union (CJEU) judgment concerning the impact of the VAT grouping rules on international groups which confirms no changes to UK grouping provisions are required, but indicates there may be changes to UK VAT accounting in some circumstances

The CJEU ruling (C-7/13) in September last year related to a dispute between Skandia American Corporation, the US arm of the insurer, and the Swedish tax authority.

The costs of services provide by the US head office to the Swedish branch were disregarded for VAT purposes, with the Swedish branch then supplying those services onwards to other group companies without charging VAT.

The CJEU stated that under the Swedish grouping provisions only the branch that was physically located in Sweden could belong to a Swedish VAT group.

Your free features:

Breaking news and expert analysis
Customisable daily newsletters
Six free CPD learning modules each year
Personalised CPD tracker
Top 75 Firms league tables
Regulatory changes
Hardman’s Tax Data

Tax | Bolt loses TOMS dispute with HMRC over charging VAT on fares

Tax | Barclays £21m VAT case and ‘skeletal’ branch

HR | People in the news: 360, Bishop Fleming, UHY

Tax | Business tax changes from 1 April 2026

Tax | Hotel La Tour loses £76k input VAT appeal over fees at Supreme Court

Navigate

Tax Services

Your free features:

Sign up to Business & Accountancy Daily