Q3. Groups

- Mere reduction in revenue due to VAT grouping not avoidance

"[36] It follows that the mere reduction in tax revenue resulting from the Member State’s choice to implement the VAT group mechanism, which forms an integral part of the common system of VAT, cannot, in itself, constitute tax evasion or avoidance within the meaning of the second paragraph of Article 11 of the VAT Directive." (Sampension Livsforsikring T-268/25)

- Possibility of economic benefit to group members is necessary consequence of VAT grouping

"[34] Transactions effected for remuneration between members of the same group are not subject to VAT (judgment of 11 July 2024, Finanzamt T II, C‑184/23, EU:C:2024:599, paragraph 47). Accordingly, the fact that members of a VAT group may derive economic benefits from their participation in such a group is a necessary consequence of a Member State’s choice to allow, in the context of its tax policy, the formation of VAT groups." (Sampension Livsforsikring T-268/25)

- Restrictions in VAT grouping must be proportionate

"[38] In the second place, it is for the referring court to assess, in the light of the principle of proportionality, whether the 100% ownership condition is necessary and appropriate for attaining the objectives of combating tax evasion or avoidance." (Sampension Livsforsikring T-268/25)