VAT Groups

European Commission v Ireland (C-85/11) – VAT Groups.

The ECJ published its decision on 9 April 2013 in this case which concerned the Irish VAT grouping rules, in particular, the admission of non-taxable persons as members of a VAT group. The EU Commission requested the Court to declare that Ireland failed to fulfill its obligations under the VAT Directive (Articles 9 and 11) by allowing non-taxable persons to be members of a VAT group.

The Court held that it could not be inferred from the words ‘as a single taxable person’ that Article 11 of the VAT Directive only allows a number of taxable persons to be dealt with as a single entity. The wording used relates to the outcome of the provision rather than being a condition of the provision. The Court held that “it is not apparent from the wording of Article 11 of the VAT Directive that non-taxable persons cannot be included in a VAT group”. To access the full judgment, click here.