Ireland: Is VAT on acquisitions deductible? | KPMG | BE
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Ireland: Is VAT on share acquisitions deductible?

Ireland: Is VAT on share acquisitions deductible?

The Advocate General of the Court of Justice of the European Union (CJEU) issued an opinion concluding that value added tax (VAT) with respect to professional services provided to the taxpayer were not deductible.

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The case concerned the deductibility of VAT on professional services incurred because the taxpayer company wanted to acquire shares of its competitor.

The High Court of Ireland previously held that VAT on these professional services could not be deducted because the takeover attempt had ultimately failed. The Advocate General, however, concluded that the taxpayer may deduct the VAT on professional services.

The case is: Ryanair Ltd. v. Revenue Commissioners, case C 249/17.

KPMG observation

The final judgment of the CJEU in this case, once issued, could be particularly significant for private equity firms and the mergers and acquisition practice within groups.

 

Read a May 2018 report prepared by the KPMG member firm in the Netherlands

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