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.


Had MVM charged its subsidiaries there would have been an economic activity in relation to the input VAT claim. 


VAT and Groups

Do you like our content and want to know more? Sign up now * for Nichola's FREE SME tax news, tips and topical more

*There are no strings attached: you will be free to unsubscribe at any time and we don't pass on anyone's details to anyone else and as you can see we don't blur our content with annoying adverts.