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Dutch Tax Authorities focuses on entitlement of holding companies to deduct VAT – KPMG

The Dutch Tax Authorities have recently been pro-actively approaching holding and financing companies to question their entitlement to deduct VAT. In a number of cases this has led to substantial supplementary VAT assessments being imposed. We have reservations about the limitations the Dutch Tax Authorities sometimes place on the deduction of VAT. In light of the potential impact this can have financially, it is advisable to ensure that the VAT risks run by holding companies as a result of the approach taken by Dutch Tax Authorities are identified on time.
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