- The Spanish Supreme Court ruled that intragroup share transfers by mixed holding companies are considered financial activities, not management services, for VAT purposes.
- As a result, input VAT related to these financial activities (such as share sales) is not deductible.
- The court clarified that only transfers involving an “autonomous economic unit” capable of independent operation may be excluded from VAT calculations.
- The decision provides legal certainty: portfolio activities are generally financial (not management) and only certain share transfers may fall outside VAT scope if strict conditions are met.
Source: bdo.global
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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