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CJEU rules on VAT deduction of a holding company

Global Tax Update:August 2015/Germany

The CJEU released its decision in the joined cases of Larentia & Minerva and Marenave Schiffahrt (C-108/14 & C-109/14) regarding the input VAT incurred by holding companies on the acquisition of shareholdings in subsidiaries, taking the view that such input VAT should be recoverable in full provided the holding companies are actively managing these subsidiaries. The Court further held that unless national legislation is seeking to prevent abuse and combat tax evasion or avoidance, it cannot restrict the right to form a VAT group solely to entities with legal personality. (Global Tax Update:August 2015/Germany)

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This newsletter is divided into the following topics regarding CJEU decision on VAT deduction of a holding company:

(1) Background
(2) Questions
(3) CJEU judgment

 

>> Click for Japanese [欧州司法裁判所が持株会社のVAT控除を認める]

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