The grievance in the proceedings against Ireland and the others concerns the fact that Ireland allows the inclusion of non-taxable persons into a VAT group. And this is not in line with the proper application of Article 11 of the VAT group.

In July 2009 the Commission adopted a Communication on the VAT grouping option provided for in the VAT Directive.

The Communication set out the Commission's view on how the provisions of Article 11 of the VAT Directive should be translated into practical arrangements whilst respecting the basic principles of the Community VAT system and ensuring that the effects of using the option scheme remain restricted to the Member State applying it.

In addition, the Commission, acting in the framework of its role as guardian of the treaties, examined the national provisions on this issue in order to ascertain their compatibility with Community Law. This examination has resulted in the opening of infringement proceedings against the 8 Member States, the commission said.