Organschaft of a GmbH & Co. KG

The Federal Fiscal Court has ruled on the requirements for a VAT group between the companies of a GmbH & Co. KG.

The VAT grouping of two companies requires the economic integration of one company into the other. To this end, the divisions of the controlling company and the controlled company must be intertwined. The economic integration can also be based on the interdependence between the divisions of two controlled companies. However, there must be more than just insignificant relationships between the divisions. The Federal Fiscal Court is convinced that this is not the case if only readily interchangeable office premises of the other company are used.