Federal Finance Court rules on input tax deduction for a managing holding company

• The Federal Fiscal Court has ruled on the input tax deduction of a business management holding company.
• The input tax deduction of a holding company is denied if the services are not directly related to the holding’s own turnover but to the turnover of third parties (subsidiaries).
• This ruling follows a decision by the European Court of Justice in 2022.
• The ruling is relevant for the value-added tax treatment of a leadership holding company.
• The decision addresses tax planning models involving a business management holding company.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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