VAT deduction on deal fees for an aborted transaction, and not for an intended sale of shares
Recently, the CJEU decided on two important cases with respect to the VAT deduction on deal fees (see C-249/17 Rynair Ltd. And C-502/17 C&D Foods Acquisition) in a seemingly opposing manner. Ryanair case In the Ryanair case, deal fees were incurred in relation to a failed takeover of a competitor. Ryanair claimed input VAT deduction
No VAT deduction on deal fees for an intended (not realized) sale of shares
The holding company C&D Foods Acquisition, part of the Arovit group, incurred deal fees in relation to an envisaged but not realised sale of all shares of its sub-subsidiary. C&D Foods acquisition provided taxable services to its sub-subsidiary and claimed input VAT deduction on the costs incurred. The CJEU referred to the Becker case (C-104/12,
