Program:

The right to deduct input VAT for holding and financing companies remains a key focus of VAT audits and a frequent subject of disputes before the Luxembourg Courts and Tribunals – a trend that has persisted for several years.

Although the case law of the Court of Justice of the European Union (CJEU) is relatively clear, its practical application by taxpayers, the AEDT, and local courts can sometimes lead to difficulties, if not unpleasant surprises.

Nevertheless, a consistent and well‑documented approach should enable VAT‑taxable persons to fully exercise their basic right to deduct input VAT when the relevant conditions are met.

In this session, we will discuss:

• The fundamental rules governing the right to deduct for holding companies and financing activities, including the concepts of partial/mixed VAT‑taxable persons and incidental financial transactions;
• The case law of the CJEU, with a focus on the most recent decisions;
• Recent developments regarding the interaction between transfer pricing and VAT, and their implications for the right to deduct input VAT, with a particular emphasis on shareholders’ costs;
• Insights from local case law and its evolution in light of the AEDT’s changing positions on these issues;
• AEDT practice and its recent developments, notably the so‑called “1:1” principle, and circulars 765 and 765‑1;
• Structures considered at risk, common “red flags,” and frequently observed shortcomings;
• Best practices, both for determining the right to deduct and for documenting the transactions of VAT‑taxable persons.

Target audience:

This session will be of particular interest to all tax professionals involved in Luxembourg tax matters, whether working in‑house or as external advisors.

Duration and format:

• Webinar
• Duration: 2 hours

Olivier Coulon -  Partner at SIMON Law

Olivier Coulon has significant experience in tax law, with a strong focus on VAT. Prior to joining SIMON Law, Olivier worked as a senior associate in a major international law firm in Luxembourg, where he assisted a broad range of clients including multinationals and real estate firms, investment managers and private equity houses. Olivier also assists clients in the framework of tax audits and defends their interests before the Luxembourg Courts.

He is the author of several publications and is a member of the editorial board of “Les cahiers de fiscalité luxembourgeoise et européenne”.

Olivier was admitted to the Bar in Luxembourg (2019). He speaks English and French.