In principle, a Luxembourg holding company (Soparfi) is considered a passive taxable person. It cannot recover VAT on its expenses if its activity is strictly limited to the mere holding of shares.

The active management exception ("Immixtion"): If the holding company provides remunerated services to its subsidiaries, it acquires a right to deduct VAT. To understand the precise criteria, read our full analysis here.

For a Luxembourg company (LuxCo) exporting its services or products within the private sector (B2B), the question is no longer "if" but "how" to adapt to guarantee invoice payments. Olistone supports you in automating this transition. Find all the details in our dedicated article on electronic invoicing.