.png)
.png)
No VAT apportionment required between business and non-business activities.
The Court of Justice of the EU ruled that VAT incurred on the acquisition of a shareholding in subsidiaries forms part of a holding company’s general costs. The VAT does not need to be apportioned between business and non-business activities. This is because these costs have a “direct and immediate link” with the holding company’s economic activities.
In cases concerning two German holding companies Beteiligungsgesellschaft Larentia + Minerva mbH & Co KG v Finanzamt Nordenham (C‑108/14) and Finanzamt Hamburg-Mitte v Marenave Schiffahrts AG (C‑109/14) the court confirmed that although there is a requirement to apportion input VAT where a holding company is involved in the management of some of its subsidiaries the VAT incurred by holding companies making supplies of management and other services to underlying subsidiaries should be recoverable.
In September 2014 ...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
