- The VAT classification of a holding company depends on its actual activities; pure holding companies are not entrepreneurs, while management holdings qualify through paid services to subsidiaries.
- Input VAT deduction is only possible for economic activities and must be limited to the entrepreneurial sector; mixed holdings must properly allocate and document input services.
- VAT group (Organschaft) poses significant risks, especially if unintentionally established, as the controlling company is jointly liable.
Source: datenbank.nwb.de
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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