A holding company charges costs on to its participations. Keeping participations is not an economic activity that leads to VAT-taxed services. The holding company has to make plausible that it adds value to the services or does or omits to do something. Because the holding company does not make this plausible, the holding company is not a VAT entrepreneur when charging costs. The holding company cannot deduct the VAT on the costs, according to the Supreme Court. The Supreme Court rules in accordance with the earlier judgment of the Court.
Source: Our contributor – Van Vilsteren BTW Advies
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