EY - European VAT: new rules for intercompany flows

EY tax webcast

European VAT: new rules for intercompany flows

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A recent European Court judgment will create additional complexity and potentially significant costs for businesses operating across the EU using a branch network.

The judgment could result in value added tax (VAT) falling due on all branch-to-branch and intercompany flows. In addition to determining how and where any tax is due, it will also create costs for those businesses that are not entitled to VAT recovery.

The major impact will be for non-EU headquartered businesses and their EU branch structure. The most affected industry is likely to be financial services, where banks and insurers are typically barred from recovering VAT costs they incur.

However, any business with intercompany charges will need to be aware of the implications all across Europe.

Join our team of professionals as they discuss the case (Skandia) and how the judgment is being dealt with across the EU. We will address the VAT implications in simple terms and explain steps companies can take to proactively manage all stages of their supply chain in a compliant and cost-effective way.

Our discussion will be moderated by Andrew Bailey, Ernst & Young LLP (UK), EMEA Head of FSO Indirect Tax. Andrew will be joined by a panel of professionals representing a range of jurisdictions and industries.