On August 18, 2017 the Vestre Landsret (the High Court of Western Denmark) lodged a request for a preliminary ruling with the Court of Justice of the European Union (CJEU) in the Case C-502/17, C&D Foods Acquisition ApS versus Skatteministeriet. The questions referred for a preliminary ruling have been published in the Official Journal of the European Union of October 16, 2017.

Questions referred

1)   Should Article 168 of Directive 2006/112/EC be interpreted as meaning that a holding company, in circumstances such as those in the main proceedings, is entitled to a full deduction of VAT on input services related to due diligence investigations before an envisaged, but not completed, sale of shares in a subsidiary to which the holding company supplies management and IT services that are subject to VAT?

2)   Is the answer to the above question affected by the fact that the price for the VAT taxable management and IT services, which the holding company supplies for the purposes of its economic activity, is a fixed amount corresponding to the holding company’s expenditure on employees’ salaries, with the addition of a ‘mark-up’ of 10 %?

3)   Irrespective of the answer to the foregoing questions, can a right of deduction exist if the consultancy costs at issue in the main proceedings are regarded as general costs, and if so, on what conditions?

Copyright – internationaltaxplaza.info

Stay informed: Subscribe to International Tax Plaza’s Newsletter! It’s completely FREE OF CHARGE!

and

Follow International Tax Plaza on Facebook