In its decision of 28 March 2017, the tax authority of the first instance found that the Parties had wrongly assumed that the VAT tax base for the contributions made by W. and B. as part of the increase in the Company’s share capital should be calculated taking into account the issue value. In the opinion of the tax authority, the tax base should be determined on the basis of the nominal value of the shares.
As a result, the tax authority questioned the Company’s right to deduct input VAT on those contributions and corresponding to the amount exceeding the amount calculated on the nominal value of the shares.
Source MDDP
See also
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases
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