VAT AND HOLDING COMPANIES – COURTESY OF PWC

On 9 January 2018, the TAX Authority has released Circular 222 which provides the Tax Authority’s interpretative guidance on the interaction between holding companies and VAT. In particular, the Circular reconfirms the decided ECJ principles that active holding companies are business persons, while at the same time confirms that active holding companies are able to recover input VAT, at least partially. The Circular sheds more light on an area of VAT which is rather complex and highly technical. The dedicated team of VAT professionals at PwC is at your disposal to consider the impact that this circular may have on your business and to help you calculate any the recoverable VAT on the basis of the factual evidence of the holding company’s activities.

For more information click here: https://www.pwc.com.cy/en/publications-newsletters/indirect-tax-update.html

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