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Commentary

VAT grouping (Germany)

19 Germany

As noted above (see 19.3), in the case of corporate bodies under common control, only the controlling company (if established in Germany) is to be registered as a taxpayer in Germany. The controlled companies, insofar as they are domestic, are considered to be a dependent entrepreneurial part of the controlling company (and accordingly are not considered as separate taxable person).

The following conditions apply:

  1. Ìý

    •ÌýÌýÌýÌý The parent (controlling) member of the VAT group can be any type of legal entity, including a corporation, a general partnership or a sole entrepreneur.

  2. Ìý

    •ÌýÌýÌýÌý A subsidiary (controlled) member of a VAT group must be a corporation. However, national jurisdiction has allowed

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