- Recent decisions by the State Secretary revoke old policies and introduce new policies regarding holding companies
- New policy will be effective from July 1, 2025
- Decisions focus on VAT deduction rights for buying and selling shares in subsidiaries and VAT fiscal unity, including holding companies
- Holding shares alone does not constitute VAT entrepreneurship
- VAT on costs related to holding, buying, and selling shares is generally not deductible
- Exceptions include when shares are directly linked to the shareholder’s economic activity
- Shareholder must be actively involved in managing the subsidiary or the shares must be essential to their economic activity
- Shareholder must also engage in business activities involving shares and other securities
- Consider VAT deduction rights when holding shares
- Different rules apply to direct costs and general costs related to economic activities
- Specific rules apply to VAT deduction on costs related to selling shares
- Current policy on VAT deduction for selling costs will change on July 1, 2025
- Holding companies that are not VAT entrepreneurs cannot be part of a VAT fiscal unity under old policy
- New policy will require a full assessment for VAT fiscal unity eligibility from July 1, 2025
Source: crop.nl
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.
