Content of the new dree
The new decree includes the VAT treatment of the activities of supervisors and members of various committees (as previously outlined in the decree of April 28, 2021). Additionally, it introduces policy rules on VAT fiscal unity and tax liability for holding companies that only hold shares, known as ‘pure holdings’.
Pure holdings
The so-called holding resolution from 1991 will be revoked with this decree but is effectively incorporated into the new decree. In principle, only VAT entrepreneurs can be part of a VAT fiscal unity. As a result, pure holdings generally cannot be included in a VAT fiscal unity unless they meet the approval conditions outlined in the decree. This approval allows a holding company to be part of a VAT fiscal unity under certain conditions if it plays a guiding and policy-determining role within the group. The approval also applies to intermediate holdings, provided they meet the requirements. A written request to the tax inspector is required to obtain this approval, as was the case under the previous holding resolution.
Furthermore, in addition to the above requirement, pure (intermediate) holdings must meet three interdependencies—financial, organizational, and economic—to qualify for approval. In practice, economic interdependence, in particular, can be a point of discussion.
Interdependencies of VAT Fiscal Unity
The new decree addresses the three interdependency requirements for VAT fiscal unity: financial, organizational, and economic interdependence. These interdependencies are clarified through case law-based examples, providing guidance for assessing whether a VAT fiscal unity exists.
More information
If you have any questions about these changes, please contact us. We will be happy to advise you. You can contact us via e-mail: info@vanoers.nl.
