Press Release: VAT: Commission refers seven Member States to Court over grouping rules

The European Commission decided on 24 June 2010 to refer The Netherlands, Ireland, Finland, Sweden, United Kingdom, the Czech Republic and Denmark to the EU's Court of Justice with regard to their failure to respect their obligations under EU law as regards VAT grouping rules. VAT grouping is allowed for the purpose of administrative simplification under the VAT Directive, which gives Member States the option to treat those who are legally independent but closely bound to one another by financial, economic and organisational links as one single taxable person.

• Primary Source

European Commission: Press Release:IP/10/796: VAT: Commission requests Ireland, The Netherlands, Poland and Austria to change laws on preferential VAT rates for certain sectors http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/796&format=HTML&aged=0&language=EN&guiLanguage=en

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