ECJ VAT CASE OVERSEAS BRANCHES
March 1st, 2006
BY KEITH NUTHALL
VAT cannot be reclaimed on supplies from a European Union (EU) company to an unincorporated branch in another EU country, the European Court of Justice (ECJ) has ruled. Judges said that under the EU's sixth VAT directive, such a wing of a company "should not be treated as a taxable person". The ruling comes in a dispute between Britain's FCE Bank and the Italian finance ministry and revenue agency. FCE was trying to reclaim VAT on supplies it made to an unincorporated Italian department, called FCE IT. This was challenged by the ...
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