VAT’s the Hold-Up? It’s been a while since we last tackled holding companies, so we’re bringing the subject back into focus for our next seminar!

The Chelco VAT International Academy continues its series of high-level VAT educational events with a morning seminar dedicated to the VAT treatment of holding activities — the buying, issuing, holding and selling of shares, in all its glory.

A Cyprus-established holding company is practically a national institution when it comes to international business on the island. And yet, the legislation covering it amounts to little more than a handful of sentences — VAT law’s version of a shrug. Thankfully, the European Court of Justice (ECJ) has spent years filling in the gaps, one judgment at a time.

• When is a holding company a taxable person — and when is it decidedly not?
• When must it apply the reverse charge mechanism, including the domestic reverse charge on construction services or the purchase of certain IT equipment?
• What happens to input VAT deduction rights when services are tied to holding, buying, issuing or selling shares?
• And what does the Department of Taxation actually say about all this?

These questions (and a few more) will be unpacked at the seminar, with reference to key ECJ judgments spanning decades of case law. Expect real, practical relevance for anyone handling the VAT side of holding activities — this one’s built to sharpen up your everyday practice, not just tick a CPD box.

On the agenda:

• When a holding entity qualifies as a ‘taxable person’ for VAT purposes
• What counts as ‘economic activity’ versus ‘non-economic activity’ where shareholding is concerned
• How to interpret when an activity forms “the direct, permanent and necessary extension” of a business
• When a holding company must apply the reverse charge mechanism on services from Cypriot and international suppliers
• How a holding company’s status affects its right to deduct input VAT on holding, acquiring, issuing or selling shares
• The implications for holding companies that are members of a VAT group
• A deep dive into a plethora of ECJ decisions on holding entities

The seminar is open to any professional with exposure to VAT matters such as accountants, chief accountants, CFOs, financial controllers, tax lawyers, tax advisors, et al.