Global Tax 50 2014: Skandia

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Global Tax 50 2014: Skandia

ECJ judgement

 Skandia

Skandia is a new entry this year

The ECJ case hinged on the supply by Skandia America Corporation (SAC), a US company without an establishment in the EU, of IT services purchased by SAC from a third party to the company's Swedish branch, Skandia Sverige (SKS), which had joined a Swedish VAT group. VAT was not applied to the costs charged by SAC to SKS, a position disputed by the Swedish tax authorities, and the question was referred to the ECJ. Following the principles of FCE Bank (2006), the taxpayer argued that the supplies from SAC to SKS should be disregarded for VAT purposes as cross-border supplies of services from a company to its EU branch. The ECJ, however, said the services were not a supply from SAC to its branch (SKS), but rather, for VAT purposes, were a supply from SAC to the VAT group to which the branch (SKS) belonged. Therefore the supplies were taxable and the Swedish VAT group of which SKS was a member must account for the VAT due.

The judgement caused huge concern among financial services taxpayers, which benefit from certain VAT exemptions, because of their frequent use of branches to conduct overseas business and of VAT groups to minimise VAT leakage.

There is still a lack of clarity on how member states will apply the ECJ's decision. Some national authorities have issued brief statements pointing out that their VAT grouping rules differ from Swedish VAT grouping rules (as the UK authority did in October) but taxpayers remain in wait-and-see mode. Financial services taxpayers, in particular, will not have welcomed the uncertainty-inducing influence the Skandia case has had during 2014.

The Global Tax 50 2014

View the full list and introduction

Gold tier (ranked in order of influence)

1. Jean-Claude Juncker  2. Pascal Saint-Amans  3. Donato Raponi  4. ICIJ  5. Jacob Lew  6. George Osborne  7. Jun Wang  8. Inverting pharmaceuticals  9. Rished Bade  10. Will Morris


Silver tier (in alphabetic order)

Joaquín AlmuniaAppleJustice Patrick BoyleCTPAJoe HockeyIMFArun JaitleyMarius KohlTizhong LiaoKosie LouwPierre MoscoviciMichael NoonanWolfgang SchäubleAlgirdas ŠemetaRobert Stack


Bronze tier (in alphabetic order)

Shinzo AbeAlberto ArenasPiet BattiauMonica BhatiaBitcoinBonoWarren BuffettECJ TranslatorsEurodadHungarian protestorsIndian Special Investigation Team (SIT)Chris JordanArmando Lara YaffarMcKessonPatrick OdierOECD printing facilitiesPier Carlo PadoanMariano RajoyNajib RazakAlex SalmondSkandiaTax Justice NetworkEdward TroupMargrethe VestagerHeinz Zourek

more across site & shared bottom lb ros

More from across our site

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article