22 January 2018 Cyprus Tax Authority issues Circular on VAT treatment of active management holding companies The Cyprus Tax Department issued an Interpretative Circular on January 9, clarifying the value added tax (VAT) technical treatment of active management holding companies, and in particular, the right to deduct management expenses pertaining to subsidiaries. The Tax Authority, through this Circular, expressed its position as to when a holding company has the right to recover input VAT, which follows the decisions of the Court of Justice of the European Union in a number of cases. Document ID: 2018-0151 |
