- The ECJ ruled that companies within a corporate group can deduct VAT on administrative services provided by other group entities.
- The services must be used directly for the company’s taxable activities.
- A direct and immediate link between the services and the company’s taxable business activities must exist.
- VAT can be deducted even if the services are not tied to specific taxable transactions, as long as they contribute to the company’s overall taxable activities.
- Tax authorities cannot deny VAT deductions based on the economic necessity or profitability of the services.
- The taxpayer must provide sufficient proof and documentation to demonstrate that the acquired services are used for their taxable activities.
Source: marosavat.com
See also
- Join the Linkedin Group on ECJ/CJEU/General Court VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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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