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A holding company enquired whether acquiring the voting rights of another entity would allow it to include that entity in its special VAT group regime. The DGT ruled that if effective control is obtained through more than 50% of voting rights and both economic and organisational links are established, the requirements are met.
This ruling clarifies the criteria for forming a VAT group, specifically confirming that control via voting rights is a valid mechanism for establishing the necessary relationship between a parent and subsidiary entity.
The tax team reviews your specific situation.
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