State of Play in Respect of the Skandia America Corporation Case

Abstract:

On 7 September 2014 the European Court of Justice delivered its landmark decision in the Skandia America Corporation case (C-7/13).

The judgment deals with the Value Added Tax (VAT) treatment of services provided by a foreign head office to its fixed establishment, which is included in a VAT group. The case has a huge potential impact not only in the financial services sector, but in cross-border business in general.

Now, almost two years after the decision was taken, the author reflects on the judgment, taking into account the views of various stakeholders. The different approaches of Member States will be outlined as well as the potential way forward.

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