EU To Take Luxembourg To Court Over VAT Scheme

Law360, New York (February 20, 2014, 2:08 PM EST) -- The European Commission on Thursday said it will sue Luxembourg in the European Union's Court of Justice for incorrectly applying a value added tax scheme to cost sharing associations.

Cost sharing associations are groups of businesses who join together to share costs for VAT purposes, and under EU law, some of their services are exempt from VAT. The exemption only applies to services that aid members' nontaxable or tax-exempt activities, but Luxembourg allows the exemption for services that aid taxable activities, up to a limit, prompting...
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