Pull a Rabbit Out Of a Hat Trick: Safeguarding Input VAT Deduction by Procuring Supplies via a Parent Company (Holding Company)

Structures in VAT are not common. In the recent case before the Tax Court in Lower Saxony, the parties involved tried to obtain input VAT deduction by contributing the input supplies to the subsidiary company as shareholder contributions free of charge. Is this the new “pull a rabbit out of a hat trick” in VAT law set up with a view to undermining the rules for input VAT deduction?

Source: kmlz.de

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