The acquisition or disposal of a company by means of acquiring/disposing of its share capital can result in irrecoverable VAT costs.
The Revenue Commissioners take the view that any dealings in shares is exempt from VAT and any VAT cost incurred in connection with the transfers is not deductible.
With the VAT rate of 21% applicable to professional fees, the cost can be significant. The entitlement to recover such VAT has been the subject of an ECJ case (CIBO case C-16/00). The Irish Revenue have been slow to implement the findings of this case.
Our specialist team can advise you on your right to input VAT recovery and how best to structure any purchase. For further information please email email@example.com or call 061 414 455.