Supreme Court considers supply of property in a complex sale-and-leaseback-transaction as a regular supply for VAT purposes

In proceedings on a complex sale-and-leaseback transaction, the Supreme Court has ruled that there is no transfer of a going concern for VAT purposes, now that the interested party has continued her leasing business after the supply of the property, only no longer in the capacity of owner / lessor but in that of tenant / sub-lessor. The buyer has therefore not continued the business of the interested party. The Supreme Court ruled that in this case the transfer resulted in a regular supply of a property subject to VAT.

Source: Deloitte NL

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