VAT exemption for cost-sharing groups no longer applicable to financial and insurance sectors
On 21 September 2017 the European Court of Justice ("ECJ") held in the DNB Banka (C-326/15) and Aviva (C-605/15) cases that the VAT exemption for cost-sharing groups does not apply to cost-sharing groups or other cooperative arrangements whose members are banks or insurers. Banks and insurers frequently use such groups or arrangements to buy services from each other free of VAT.
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