Sonaecom SGPS SA v Autoridade Tributária e Aduaneira

In Sonaecom SGPS SA v Autoridade Tributária e Aduaneira (Case C-42/19) (12 November 2020) the CJEU held that VAT incurred by a holding company on market research services relating to an unfulfilled share purchase was recoverable. However VAT on investment banking fees for raising capital which ended up being loaned to a parent company was irrecoverable.

Sonaecom (S) was a Portuguese holding company. It incurred VAT on both a market study and investment banking fees for putting together a bond loan. The market study was conducted with a view to acquiring shares in a telecoms operator to which it would provide management services. The capital raised by the bond issue was initially intended to be used to acquire shares in the target telecom operator in order to ultimately supply it with taxable services.

S’s intention to acquire the shares was never fulfilled and instead it made the capital...

If you are not a subscriber, subscribe now to read this content.

If you are already a subscriber, sign in

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this article in full.