The input tax deduction relating to holding companies has long been discussed in literature as well as jurisdiction. This examination consistently reveals contemporary findings and developments. Therefore, the aim of this paper is to explore and reflect the input tax deduction concerning the above mentioned companies as well as company-internal services of affiliated groups, referencing the jurisdiction of the ECJ and the Higher Administrative Court by means of analysing specialised literature and concepts. The paper starts with a general description of the legal requirements on basis of national law on the one hand and European law on the other. Aside from particular features of this approach, terms such as adjustment of deductions, apportionment of input VAT and restrictions on the right of deduction will be elaborated. For a better understanding the following two chapters deal with the important actual definitions of entrepreneur and enterprise in terms of VAT regulations. Concerning the concept of entrepreneur it is crucial to define the beginning and the end of this attribute, as well as the ability of an economic figure to originate it. When we speak of VAT law, the operating range of a company and the developments of ECJ jurisdiction in this matter, particularly in the context of the so called “Spheres theory”, are of equal importance. To introduce the core of this paper, motifs, advantages and disadvantages, forms and characteristics of enterprise and holding structures from a corporate laws point of view will be outlined. The main part deals with the actual input tax deduction of holding companies with special interest in “mixed holdings” on the one side, and preliminary questions of the right of deduction concerning the accounting method of company-internal services on the other side. ^Beforehand, the cost contribution arrangements are explained by means of an excursus into the topic of transfer pricing with regard to system and reasonableness.