Skandia America and VAT Grouping in Spain

For the first time since publication of Court Justice European Union’s (CJEU’s) decision in Skandia America, a Spanish administrative authority has spoken out explicitly about impact such judgment on Spain. With its resolution, reopened closed debate when pointing that it would be totally inadmissible to reject application America case legal system only as result particular manner Article 11 VAT Directive been implemented by legislator. This article analyses problems and doubts concerning groups constituted under Act. To do so, this performs three-step analysis. First, arguments presented CJEU justify are reviewed. Secondly, author provides description grouping scheme is applicable Finally, attention focused reasoning offered resolution support fact fully located EU Law, Directive, grouping, branch, fixed establishment, head office, supply services, single taxable person, intra-group transaction, principle subsidiarity.