On 8 September 2022, the Court of Justice of the European Union (“CJEU”) rendered an important judgment concerning the right to deduct input VAT by holding companies (Finanzamt R v. W GmbH, C-98/21). The CJEU ruled in essence that a holding company can only deduct input VAT insofar as it relates to its own output activities (and not to the output activities of its subsidiaries).
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See also
- ECJ C-98/21 (Finanzamt R) – Judgment – No Input VAT recovery by holding for free services to subsidiaries that perform mostly VAT exempt activities
- ECJ Cases on Right to deduct VAT by Holding companies related to their subsidiaries (Art. 167, 168, 173)
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