The Court of Justice of the EU recently issued a judgment in a case that may have implications for multinational organizations with either branch operations or head office in EU Member States particularly those entities in the financial services sector that are not often able to recover value added tax (VAT) incurred on cross-border services. The CJEU judgment in the Skandia America case (C-7/13, 17 September 2014) concludes that the “VAT disregard” rule that generally applies to such services, did not apply when the branch forms part of a VAT group.