- The ECJ ruled on a case involving a Swedish holding company and input VAT deduction.
- The holding company provided services to 19 subsidiaries in areas like business management and IT.
- It invoiced approximately EUR 200,000 plus EUR 50,000 VAT using the cost-plus method.
- The holding company did not account for its total costs of EUR 2,500,000 when calculating service costs.
- It claimed a full input VAT deduction, but subsidiaries had some VAT-exempt services.
- The tax authorities wanted to increase the service amount to EUR 2,500,000 for VAT base calculation.
- The ECJ had to decide if the holding company provided one single service or multiple individual services.
- The ECJ determined the services were individual, not a single service, following the Advocate General’s opinion.
- The case highlights issues in holding company structures and VAT deduction practices.
Source: kmlz.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.
