On 17/10/2018, the ECJ ruled on a VAT reference C-249/17* re VAT credit.

According to the Court art. 4 and 17 of the Sixth Council Directive must be interpreted as conferring on a company, such as that at issue in the main proceedings, which intends to acquire all the shares of another company in order to pursue an economic activity consisting in the provision of management services subject to VAT to that other company, the right to deduct, in full, input VAT paid on expenditure relating to consultancy services provided in the context of a takeover bid, even if ultimately that economic activity was not carried out, provided that the exclusive reason for that expenditure is to be found in the intended economic activity.


*All rulings of the ECJ should be read in the concrete context.