VAT and general expenses: new workhorse of the Administration?

The Lyon CAA (CAA Lyon, December 15, 2022, No. 21LY00167, Compagnie des Animaux) ruled on whether the expenses incurred by a holding company had a direct link with its activity consisting of the provision of services rendered to its subsidiaries and were, as such, deductible.

The exercise of the right to deduct VAT by holding companies responds to now well-established principles based on the rule of allocation, the notion of overheads and interference in the management of subsidiaries.

The Administrative Court of Appeal of Lyon, in a judgment of December 15, 2022, ruled on whether the expenses incurred by a holding company had a direct link with its activity consisting of services rendered to its subsidiaries. and were, as such, deductible.

Source Lexbase.fr

See also

• Right to deduct VAT by Holding companies related to their subsidiaries (Art. 167, 168, 173)

 

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