Whether a Holding company part of VAT Group can recover full VAT credit
If a holding company is part of the VAT Group and is engaged in providing loans to subsidiaries on which it earns interest (VAT exempt) and also cross charges some expenses (VATable), can it recover full VAT credit on common expenses? Since majority of the expenses would related to providing taxable activities and nothing significant would be used to provide exempt activities, can a view be taken that entire VAT credit is eligible to be recovered.
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