Martin Shah and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
Input VAT and aborted share sales
The decision of the CJEU in C&D Foods Acquisitions ApS v Skatteministeriet (Case C-502/17) is by no means the first to consider the ability of a seller of shares to recover input VAT on associated costs. As far back as 1995 the court held in BLP (Case C-4/94) that it was not permissible to look through to the seller’s ultimate motive in applying the direct and immediate link test for input VAT recovery. In fact the C&D Foods and BLP cases share much in common both concerning a sale of shares in a subsidiary to raise funds to deal with financial difficulties and to pay off debts owed by the business. But while the decision reached by the CJEU was ultimately very...
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Martin Shah and Gary Barnett (Simmons & Simmons) provide your monthly review of the VAT developments that matter.
Input VAT and aborted share sales
The decision of the CJEU in C&D Foods Acquisitions ApS v Skatteministeriet (Case C-502/17) is by no means the first to consider the ability of a seller of shares to recover input VAT on associated costs. As far back as 1995 the court held in BLP (Case C-4/94) that it was not permissible to look through to the seller’s ultimate motive in applying the direct and immediate link test for input VAT recovery. In fact the C&D Foods and BLP cases share much in common both concerning a sale of shares in a subsidiary to raise funds to deal with financial difficulties and to pay off debts owed by the business. But while the decision reached by the CJEU was ultimately very...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
