Share with your friends

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.


Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal