In MVM Magyar Villamos Muvet Zrt. V Nemzeti Ado-es Vamhivvatal Fellebbviteli Igazgatosag (Case C-28/16) a holding company was unable to reclaim input VAT on its management activities as it was providing its services free of charge to its subsidiaries.
- A holding company leased power plants and it also provided free management services to its subsidiaries.
- It was unable to deduct input VAT incurred on its management activities to the group as it was not engaged in any economic activity.
Comment
Had MVM charged its subsidiaries there would have been an economic activity in relation to the input VAT claim.
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