Comments on ECJ C-98/21: AG opines input VAT incurred on services contributed free of charge to a subsidiary is non-deductible

Advocate-General (AG) Pitruzzella of the Court of Justice of the European Union (CJEU) issued his opinion on 3 March 2022 determining that a holding company may not recover input VAT incurred on a taxable supply of services contributed free of charge to its subsidiaries and used for VAT-exempt activities of the subsidiaries (Finanzamt R v W-GmbH). The CJEU still must issue its decision in the case.

Source BDO

See also ECJ C-98/21 (Finanzamt R) – AG Opinion – No Input VAT recovery by holding for free services to subsidiaries that perform mostly VAT exempt activities