The Luxembourg District Tribunal reaffirmed the established case law on the right to deduct input VAT, stating that taxable persons must meet certain conditions. These conditions include demonstrating a direct and immediate link between the acquisitions of goods and services and specific output economic transactions falling within the scope of VAT. The judgment also outlines rules for deducting input VAT for mixed, partial, and mixed and partial taxable persons. Additionally, it clarifies that holding shareholdings automatically qualifies a VAT taxable person as a partial taxable person, requiring them to calculate the prorata right to deduct VAT for general costs.
Source Gilles Barbabianca
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