ECJ: No input VAT recovery for management holding company

The European Court of Justice decided that a holding company with taxable output services to its subsidiaries is not entitled to deduct input tax if the input services received are not directly and immediately related to the holding company’s own sales, but rather to the largely tax-exempt activities of the subsidiaries.

The ECJ case reference is C‑98/21 Finanzamt R judgment of 8 September 2022.

Source: PwC DE


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