The right to deduct input VAT for holding and financing companies is an important source of VAT audits and disputes before the Luxembourg Courts and Tribunals – and has been for several years. 

Although the case law of the Court of Justice of the European Union is quite clear, its application by the taxpayers, by the AEDT and the local courts, sometimes gives rise to some difficulties if not unpleasant surprises.

However, a consistent and documented approach should enable VAT taxable persons to make full use of the basic right to deduct input VAT when the conditions are met. 

In this session, we will discuss:

• ­ the basic rules of the right to deduct for holding companies and financing activities as they derive from European law and the case law of the Court of Justice;
• ­ the lessons of local case law, and its evolution as the AEDT's positions on these issues change;
• ­ the practice of AEDT and its developments, in particular the so-called "1:1" principle, circulars 765 and 765-1;
• ­ the structures at risk, "red flags" and shortcomings generally observed; 
• ­ best practices, both in the determination of the right to deduct and in the documentation of taxable persons' transactions.

This conference will be of particular interest to all tax professionals working on Luxembourg tax matters, whether as in house or as service providers.

Olivier Coulon : Counsel at SIMON Law

Olivier Coulon specialises in VAT law and advises both international clients and Luxembourg operators. Through his background, Olivier has expertise in VAT for multinational groups as well as in the structuring of private equity transactions and regulated and non-regulated Luxembourg alternative investment funds. He also assists his clients in the field of tax litigation, both in the pre-litigation phase and before the Luxembourg courts.

Olivier is a member of the editorial board of the Cahiers de la fiscalité luxembourgeoise et européenne, where he regularly publishes a column on VAT case law.

Olivier is admitted to the Brussels Bar (2014) and the Luxembourg Bar (2019). He studied law at the Catholic University of Louvain (Belgium) and the University of Geneva (Switzerland). He also holds an LL.M. degree from the University of Cambridge (UK).