- Mixed holding companies can deduct VAT incurred, even for costs not directly linked to management fees charged
- These costs are considered overheads and deductible regardless of their direct reflection in service pricing
- The European Court of Justice has ruled on this matter, condemning France’s previous stance
- Mixed holding companies must pay wage tax if they have employees and did not meet specific VAT turnover thresholds in France
- France has a unique wage tax not found in other European Member States
- Increased audits on holding companies suggest a need for reviewing VAT and wage tax ratios
Source: taxand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
