Germany: VAT group; input tax deduction of a holding - KPMG Global
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Germany: VAT group; input tax deduction of a holding

Germany: VAT group; input tax deduction of a holding

The German Ministry of Finance (BMF) has adjusted for value added tax (VAT) purposes, the VAT application decree to reflect recent developments with respect to the VAT group and the input tax deduction available on the purchase, holding, and management of shareholdings. These changes apply partly to all open cases and partly to transactions as of 1 January 2019.


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A transitional regime is available for partnerships because under certain circumstances, a partnership can be a controlled company like a legal person.


Read a May 2017 report [PDF 260 KB] prepared by the KPMG member firm in Germany

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