Share disposals and the right of deduction of input VAT

Resource Information

The work Share disposals and the right of deduction of input VAT represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Continuing Resources.

Label

Share disposals and the right of deduction of input VAT

Creator

• Doesum, A. van
• Kesteren, H.W.M. van
• Norden, G-J. van

Subject

• economic activity
• ECJ case law
• services
• VAT deduction
• VAT exemption

Language

eng

Summary

The European Court of Justice (ECJ)'s ruling in the SKF case is a milestone in the development of the doctrine on the VAT treatment of disposals of shares by a 'controlling active parent company', such as AB SKF. The first question in the case was whether the disposal of shares was an economic activity and if so, whether it constituted a VAT exempt supply of services. The second question was whether input VAT incurred on costs made in connection to a share disposal can be deducted. Although the ECJ ruled that the disposal of shares was a VAT exempt supply of services, the ECJ created routes to deduct input VAT on costs related to the disposal of the shares. Focusing on the right to deduction of input VAT, the authors investigate the implication of the ECJ's judgment and test whether the EC VAT Directive and settled ECJ case law provide solid legal arguments to validate both the outcome and the implication of the SKF case

Citation source

In: EC tax review. - Alphen aan den Rijn. - Vol. 19 (2010),

Geographic coverage

• European Union
• Europe

Language note

English