- SPVs in merger leveraged buyouts (MLBOs) can deduct input VAT on transaction costs if they qualify as taxable persons.
- Only holding companies actively involved as SPVs in MLBOs qualify as VAT taxable persons; passive holding companies do not.
- Transaction costs incurred by SPVs are considered taxable economic activity and are eligible for VAT deduction.
- The timing of SPV expenses does not affect the deductibility of input VAT.
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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