VAT deduction for “transaction costs” incurred by mixed holding companies

The Court of Justice of the European Union confirms VAT deductibility even if the purchase of shares is unsuccessful, provided there is an intention to carry out an economic activity subject to VAT. On the other hand, the deduction is not allowed if this intention changes and the mixed holding company carries out exempt services

Source PwC

See also ECJ C-42/19 (Sonaecom) – Judgment – Input VAT on preparatory activities for acquisition of shares and restructuring that did not happen



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