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On 17 September 2104, the Court of Justice of the European Union (the “CJEU”) gave its preliminary ruling in the case of Skandia America Corporation USA, Sweden Branch v Skatterverket (C-7/13) (“Skandia”). The decision of the CJEU has been awaited with interest throughout this summer, and the CJEU has now ruled that the supply of externally purchased services from a company’s main establishment in the United States to its Swedish branch is a taxable transaction for value added tax (“VAT”) purposes. The decision of the CJEU has not followed the opinion delivered by Advocate General Wathelet on 8 May 2014, in which he had opined that such services should not be subject to VAT.