- Recovery of VAT on deal fees is a common question in deals
- HMRC challenges the recovery of VAT on deal fees
- Bidco needs to have an “economic activity” to recover VAT on costs
- Conditions must be satisfied for holding company to deduct VAT on costs
- Holding company must make taxable supplies or loans to recover VAT
- Management Services Agreement should be drafted before completion
- Holdco must be the recipient of the supply to recover VAT
- Holdco must be VAT registered to get VAT back from HMRC
- Following through on details outlined above is crucial for VAT recovery.
Source: claritastax.co.uk
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.
Latest Posts in "United Kingdom"
- UK Eases VAT Grouping Rules to Attract Foreign Investment and Simplify Cross-Border Compliance
- Tribunal Rules Bespoke Autobiography Books by Story Terrace Qualify for VAT Zero-Rating
- Full VAT Recovery Allowed on Product Photography Costs in Littlewoods v HMRC Tribunal Decision
- FTT Favors Commercial Reality Over Contract in VAT Reclaim Case on Truck Fuel and Repairs
- HMRC Updates VAT Exemption for Temporary Medical Staff After Isle of Wight Tribunal Decision
