All UK VAT Groups can Breathe a Sigh of Relief

01 May 2013

Melanie Hall QC summarises the recently released judgment from The European Court on VAT grouping

Why did the Commission commence infraction proceedings against the UK?

1. The Commission’s case was that the UK had acted unlawfully by permitting dormant companies, inactive holding companies and other non-taxable persons to join VAT groups:

a. It was concerned that in principle a VAT group could be made up of only non-taxable persons.