UK solicits businesses’ views on VAT grouping following ECJ decisions in Larentia + Minerva and Marenave and Skandia

The UK’s HM Revenue & Customs on January 14 advised that it is seeking feedback from business on how to respond to European Court of Justice decisions in Larentia + Minerva and Marenave and Skandia America Corp.

HMRC said that in response to the Larentia + Minerva and Marenave decisions, the UK government expects to change existing law by extending VAT grouping to non-corporate bodies and by replacing the existing “control” test. The goverment seeks feedback on issues associated with this change.

HMRC also said it would like business to weigh in on the VAT grouping issues identified in Scandia to assist in discussions with the European Union and other members states. HMRC previously announced that UK businesses must adjust their accounting for VAT on intragroup supplies of services beginning in 2016 to follow the Skandia decision.

A series of meetings are planned, and a formal consultation will commence in the spring.

See:

• Revenue and Customs Brief 3 (2016): review of VAT grouping provisions following the Larentia + Minerva and Marenave (C-108/14 and C-109/14) and Skandia (C-713) judgments – GOV.UK

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