France Administrative Supreme Court Clarifies VAT Deductibility Rules on Securities Transfers in Subsidiary Companies

The French Administrative Supreme Court Sept. 30 issued Decision No. 499783, clarifying the VAT deductibility rules on securities transfers in subsidiary companies. The taxpayer, a company, requested a VAT credit refund on expenses incurred on a securities transfer in its subsidiaries. The tax authorities denied the deduction. The taxpayer argued that the expenses should be considered part of its general costs. On appeal, the Administrative Supreme Court found that: 1) VAT on expenses incurred by a holding company for transfers in subsidiaries was deductible if those expenses aren’t incorporated into the transfer price and were part of general costs; 2) ...