VAT FORUM - 11th International School on Indirect Taxation
ATOZ will participate in the VAT FORUM, 11th International School on Indirect Taxation,
on 27, 28, 29 and 30 September and 01 October, 2010 at Crowne Plaza Hotel in Bruges.
on 27, 28, 29 and 30 September and 01 October, 2010 at Crowne Plaza Hotel in Bruges.
Christophe Plainchamp, Head of Indirect Tax, will be the speaker on Wednesday 29th and Thursday 30th at 2 p.m.
Subject: « Recharging headquarter’s costs to branches and group companies»
Costs are often centralised at the headquarters of a multinational company. Costs are then re-allocated on an annual basis to different permanent establishments in other Member States, or to group companies that are separate entities. What services are still not covered by the main rule of article 44 of the EU VAT Directive? How should this re-allocation of costs be dealt with when costs are charged to a branch, taking account of the decision of the ECJ in the FCE Bank Case (C-210/04), which states that "a fixed establishment, which is not a legal entity distinct from the company of which it forms part, established in another Member State and to which the company supplies services, should not be treated as a taxable person by reason of the costs imputed to it in respect of those supplies"? At the time of re-allocating overhead costs, should the original service or supply of goods be (re)considered or should the re-allocation of overhead costs be considered to be a kind of recharging of costs?
