Case C-42/19: Judgment of the Court (First Chamber) of 12 November 2020 (request for a preliminary ruling from the Supremo Tribunal Administrativo — Portugal) — Sonaecom SGPS SA v Autoridade Tributária e Aduaneira (Reference for a preliminary ruling — Value added tax (VAT) — Sixth Directive 77/388/EEC — Article 4 — Concept of ‘taxable person’ — Mixed holding company — Article 17 — Right to deduct input VAT — Input VAT paid by a mixed holding company in respect of consultancy services relating to a market study with a view to the possible acquisition of shareholdings in other companies — Abandonment of proposed acquisition — Input VAT paid on a bank commission for organising and putting together a bond loan, intended to provide subsidiaries with the necessary means to make investments — Investments not made)
Date: 2020-11-12
Institutions: Court of Justice
Subjects: VAT, bond, consultancy, holding company, investment, market research, shareholding, subsidiary, tax relief, taxpayer








C_2021019EN.01000301.xml










18.1.2021   


EN


Official Journal of the European Union


C 19/3






Judgment of the Court (First Chamber) of 12 November 2020 (request for a preliminary ruling from the Supremo Tribunal Administrativo — Portugal) — Sonaecom SGPS SA v Autoridade Tributária e Aduaneira
(Case C-42/19) (1)

(Reference for a preliminary ruling - Value added tax (VAT) - Sixth Directive 77/388/EEC - Article 4 - Concept of ‘taxable person’ - Mixed holding company - Article 17 - Right to deduct input VAT - Input VAT paid by a mixed holding company in respect of consultancy services relating to a market study with a view to the possible acquisition of shareholdings in other companies - Abandonment of proposed acquisition - Input VAT paid on a bank commission for organising and putting together a bond loan, intended to provide subsidiaries with the necessary means to make investments - Investments not made)
(2021/C 19/03)
Language of the case: Portuguese

Referring court

Supremo Tribunal Administrativo

Parties to the main proceedings


Applicant: Sonaecom SGPS SA

Defendant: Autoridade Tributária e Aduaneira

Operative part of the judgment







1.


Article 4(1) and (2) and Article 17(1), (2) and (5) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes — Common system of value added tax: uniform basis of assessment must be interpreted as meaning that a mixed holding company whose involvement in the management of its subsidiaries is recurrent is entitled to deduct the input value added tax paid on the purchase of consultancy services relating to a market study carried out with a view to acquiring shares in another company, including where that acquisition did not ultimately take place.










2.


Article 4(1) and (2) and Article 17(1),(2) and (5) of Sixth Directive 77/388 must be interpreted as meaning that a mixed holding company whose involvement in the management of its subsidiaries is recurrent is not entitled to deduct input value added tax paid on the commission paid to a credit institution for organising and putting together a bond loan, which was intended for making investments in a given sector, where those investments did not ultimately take place and the capital obtained by means of that loan was paid in full to the parent company of the group in the form of a loan.






(1)  OJ C 139, 15.4.2019.