The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note examines how to identify the recipient of a supply for VAT purposes in the context of holding companies.
It is common for VAT to be incurred on a variety of costs associated with acquiring, holding or disposing of companies. However, a holding company can only recover VAT where it is the ‘recipient’ of the supply in question (amongst other factors).
Often the question of who receives a supply is straightforward. However, sometimes complexities can arise (particularly for holding companies).
For an overview of VAT and holding companies generally, see the Holding companies ― overview guidance note.
A holding company will only be able to recover VAT on costs where it is the recipient of the supply in question.
HMRC suggests in its guidance that a holding company is the recipient of a supply where al
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