Holding companies ― who is the recipient of the supply?

Produced by Tolley
Holding companies ― who is the recipient of the supply?

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Holding companies ― who is the recipient of the supply?
  • Is the holding company the recipient of a supply?
  • Viability studies, due diligence reports, professional fees, etc
  • Costs of a target company
  • Practical points ― recipient of the supply

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

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

Popular documents