The company sold shares in a subsidiary. This sale was performed primarily to pay debts of the company. There is no imput VAT deduction in such a situation resulting from purchase of advisory services connected with the sale. If the effect of that disposal of shares is a discharge of a debt, that disposal cannot…...

A company purchased services related to a share acquisition that did not take place. However, it intended to provide management services (subject to VAT) to the target company. The Company then is entitled to fully deduct the input tax on the purchase of such services…. This content is for Full Membership members only. Want to...

Renting out real estate to a subsidiary constitutes „participation in the management” of the subsidiary and results in a full right to deduct input tax on purchases related to operations on the shares of this subsidiary (as general expenses). If these are operations on the shares of several companies, where to some of those the…...

A holding company partially performs activities subject to VAT and partially manages its subsidiaries. On account of the latter it does not issue invoices to its subsidiaries for the provision of paid services. If the holding company does not perform activities subject to VAT for its subsidiaries, it does not conduct business activity in this…...