VATupdate

Comments on ECJ C-98/21: No input tax deduction for holding company

The ECJ has ruled that a holding company is sometimes not entitled to deduct input tax if it contributes services purchased from third parties in exchange for a participation in subsidiaries.

A German holding company was engaged in the acquisition, management and operation of real estate. She was also involved in the design, remediation and implementation of construction projects. The holding company had majority interests in two companies. These companies mainly carried out exempt construction activities. The holding company and the minority shareholders in the two aforementioned companies agreed that the holding company would make a contribution in kind. That contribution consisted of the provision of management and accounting services free of charge. The holding company provided these services partly itself with its own personnel and materials and partly by purchasing goods and services from other companies.

Source Taxence

See also


Join the Linkedin Group on ECJ VAT Cases, click HERE

Sponsors:

VAT news
VAT news

Advertisements:

  • VAT news
  • VAT news