VAT Recovery for Holding Companies

Vincent McCullagh & Kate O’Toole in an article published in Irish Tax Review, consider VAT deductibility for holding companies and explore the main provisions of the rules and the complexities faced by such companies.


Almost 20 years on from the CJEU’s decision in Cibo Participations C-16/00 the VAT deductibility rules for holding companies continue to be one of the most fertile areas for tax litigation. Despite the jurisprudence at EU level, there is still a reluctance of tax authorities to fully accept what the courts have said, and this continues to lead to disputes with taxpayers. There remains a multitude of case law on the matter, including, from an Irish perspective, the notable 2018 Court of Justice of the European Union (CJEU) judgment in Ryanair C-249/17.

In July 2019 Revenue published its much anticipated Tax and Duty Manual on “VAT Deductibility for Holding Companies”, which provides a useful reference point for Irish holding companies seeking to understand the principles governing entitlement to deductibility as set out in the CJEU jurisprudence.

In this article we look at the key principles set out in the manual and Revenue’s perspective on the deductibility entitlements of holding companies.

This article first appeared in Irish Tax Review, Vol. 33 No. 3 (2020) © Irish Tax Institute

Download to read the full article here

Download the PDF
Did you find this useful?