Policy Notice on Fixed Establishments for VAT purposes updated | Deloitte Nederland

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Policy Notice on Fixed Establishments for VAT purposes updated

On 5 July 2022, the updated Policy Notice on Fixed Establishments for VAT purposes (only available in Dutch) was published.

5 July 2022

As expected, the Decree is amended in line with the ruling of the European Court of Justice (“ECJ”) in the case of March 11, 2021, C-812/19 (Danske Bank). Transactions between a head office and its branch will no longer be out of scope of VAT in case one of both is included in a VAT group in one of the Member States of the European Union. In case both establishments are not part of a VAT group, transactions between both parties will still be considered out of scope of VAT (as ruled by the ECJ in FCE Bank).

The Decree will enter into force on January 1, 2024 (i.e. in about 1,5 year) in order to give businesses that might be impacted time to prepare for the change.

In case of any questions, please let us know. We are happy to discuss the potential impact of this updated Decree for your business.

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