No VAT deduction on services for sale of shares – costs partially exempt

• Holding-bv provides management services for daughter-bv’s
• Holding-bv is taken over by SA and a loan is taken out
• One daughter-bv will be sold to repay the loan
• Foreign service providers are hired for the sale of the shares
• Holding-bv claims VAT refund for the costs incurred
• Inspector denies the VAT refund, stating that the sale of the shares is not an economic activity of the holding-bv
• The costs are directly related to the share sale, so no VAT deduction is allowed
• The court agrees with the inspector but finds that two service providers did provide exempt mediation services
• VAT refund should be granted for these services.

Source: fiscount.nl

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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