Press Release: Commission takes Luxembourg to Court of Justice over VAT in the case of independent groups of persons

The European Commission on 20 February 2014 decided to take Luxembourg to the Court of Justice of the European Union over the Value added tax (VAT) system applied by Luxembourg to independent groups of persons.

Under the VAT Directive, certain services supplied by a group to its members are exempt from VAT to avoid making operations downstream more expensive for these members, given that the VAT cannot be deducted. Strict conditions must be complied with to benefit from the exemption.

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