- Two new policy decisions regarding holding companies and VAT were published on December 10, 2024.
- The decisions replace the Holding Resolution and the Decision on the Sale of Shares and will come into effect on July 1, 2025.
- The Decision on Deduction focuses on the right to deduct input VAT.
- The right to deduct VAT is determined based on whether costs are directly and fully attributable to a specific transaction or are general costs.
- Input VAT on direct costs can be fully deducted if the costs are incurred in the context of taxable services.
- Input VAT on general costs is not fully deductible if the costs are incurred solely in the context of exempt services.
- A pro rata calculation is used to determine the portion of general costs attributable to taxable services.
- The pro rata calculation is based on the turnover ratio or actual use.
- The pre pro rata is used to determine the right to deduct VAT when costs are incurred for both economic and non-economic activities.
- The pre pro rata is not subject to statutory regulations.
- If a VAT entrepreneur holds shares, the question arises whether these shares are held in the capacity of an entrepreneur.
- Holding shares without engaging in economic activity does not constitute an entrepreneurial activity for VAT purposes.
- The Decision on Deduction also addresses the treatment of share transactions.
- The right to deduct VAT only exists if the costs are incurred in the capacity of an entrepreneur or VAT taxable person.
- This applies to transactions involving shares.
- If shares are held, sold, or purchased in the capacity of an entrepreneur, there is generally no right to deduct input VAT.
- This is because the shares are part of the entrepreneur’s economic activity at that time.
Source: fiscaalvanmorgen.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.
