The right (or not) for holding companies to deduct VAT is a heated topic at European level. Disputes are currently being clarified by the European Court of Justice, with implications for companies at European level, including in Luxembourg.
Source EY
See also
- ECJ C-98/21 (Finanzamt R) – AG Opinion – No Input VAT recovery by holding for free services to subsidiaries that perform mostly VAT exempt activities
- ECJ Cases – Right to deduct VAT by Holding companies related to their subsidiaries (Art. 167, 168, 173)
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