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Transactions between branch and head office and the right to deduct input VAT in cross-border scenarios

Suazo Pariona, Jose LU (2021) In Transactions between branch and head office and the right to deduct input VAT in cross-border scenarios HARN60 20211
Department of Business Law
Abstract
Financial institutions and VAT are often like oil and water. If a financial institution is considering centralizing an activity in a certain jurisdiction, non-recoverable VAT could pose a serious problem. In addition to that, ambiguous judgments of the European Court of Justice have contributed to this issue.

As of now, even services carried out within the same
legal entity may trigger non-recoverable VAT when there is a cross-border component involved. With a new interesting ruling in Danske Bank and a withdrawn request for a preliminary ruling in the Bank of China case, it appears to be possible to shake up the VAT area regarding VAT treatment of cross-border intra-entity services. This thesis places the above mentioned cases in... (More)
Financial institutions and VAT are often like oil and water. If a financial institution is considering centralizing an activity in a certain jurisdiction, non-recoverable VAT could pose a serious problem. In addition to that, ambiguous judgments of the European Court of Justice have contributed to this issue.

As of now, even services carried out within the same
legal entity may trigger non-recoverable VAT when there is a cross-border component involved. With a new interesting ruling in Danske Bank and a withdrawn request for a preliminary ruling in the Bank of China case, it appears to be possible to shake up the VAT area regarding VAT treatment of cross-border intra-entity services. This thesis places the above mentioned cases in context with the Skandia America and Morgan Stanley court cases and discusses their potential impact on financial institutions. Particularly for establishments located outside the European Union. (Less)
Please use this url to cite or link to this publication:
author
Suazo Pariona, Jose LU
supervisor
organization
course
HARN60 20211
year
type
H1 - Master's Degree (One Year)
subject
keywords
Branch, head office, and the concept of taxable person, The right to deduct of cross-border taxable persons, The uncertainty of the single and separate entity approach in regards to deduction, The Morgan Stanley case
publication/series
Transactions between branch and head office and the right to deduct input VAT in cross-border scenarios
language
English
id
9062596
date added to LUP
2021-08-13 11:42:00
date last changed
2021-08-13 11:42:00
@misc{9062596,
  abstract     = {{Financial institutions and VAT are often like oil and water. If a financial institution is considering centralizing an activity in a certain jurisdiction, non-recoverable VAT could pose a serious problem. In addition to that, ambiguous judgments of the European Court of Justice have contributed to this issue. 

As of now, even services carried out within the same
legal entity may trigger non-recoverable VAT when there is a cross-border component involved. With a new interesting ruling in Danske Bank and a withdrawn request for a preliminary ruling in the Bank of China case, it appears to be possible to shake up the VAT area regarding VAT treatment of cross-border intra-entity services. This thesis places the above mentioned cases in context with the Skandia America and Morgan Stanley court cases and discusses their potential impact on financial institutions. Particularly for establishments located outside the European Union.}},
  author       = {{Suazo Pariona, Jose}},
  language     = {{eng}},
  note         = {{Student Paper}},
  series       = {{Transactions between branch and head office and the right to deduct input VAT in cross-border scenarios}},
  title        = {{Transactions between branch and head office and the right to deduct input VAT in cross-border scenarios}},
  year         = {{2021}},
}