General Court 22 April 2026, T-268/25 (Opinion of Advocate General Brkan delivered on 22 April 2026.)

Also known as

Advocate General Brkan opines that Article 11 of the VAT Directive does not preclude national legislation requiring 100% ownership for certain taxable persons to form a VAT group, provided the measure is intended to prevent tax advantages beyond administrative simplification and adheres to the principles of proportionality and fiscal neutrality. The Opinion argues that while the first paragraph of Article 11 does not support a 100% capital holding requirement, such a restriction may be justified under the second paragraph as a necessary measure to combat tax avoidance, defined as the objective accrual of tax advantages incompatible with the scheme's purpose. It remains for the national court to determine if the specific Danish derogation consistently pursues this objective without violating the principle of equal treatment between different forms of corporate organization.AI