Mergers & Acquisitions

In this section you can find current tax news relating to M&A issues:

VAT – Sale of shares

On January 27, 2011 the Federal Fiscal Court (“BFH”) made a decision regarding the deduction of input VAT relating to the sale of shares in a corporation by a holding. Basically, the BFH denies a deduction unless either 100% of the shares are sold or more than 50% of the shares in a company which was part of a fiscal unity for VAT purposes are sold and in addition the seller has evidence that the buyer wants to install a fiscal unity for VAT purposes as well.