French Court Clarifies VAT Deductibility Rules for Securities Transfers in Subsidiary Companies

The French Administrative Supreme Court ruled that VAT on expenses incurred by a holding company for securities transfers in subsidiaries is deductible if not included in the transfer price and considered part of general costs. The tax authorities can challenge this if the transaction is patrimonial or expenses are included in the sale price. The lower court erred by not recognizing the taxpayer’s economic activities and mischaracterizing the expenses.

Source: news.bloombergtax.com

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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