Binding ruling: Transfer – property project – VAT liability

Asker runs a business with the purchase, sale, project development and rental of real estate. As part of this, Spørger is in the process of constructing a property with rental apartments for residential purposes.

Questioner intends to transfer the property incl. agreement with the contractor, rent paradigm, rental agency contract and already entered into lease contracts for consideration to a wholly owned subsidiary.

The Tax Council concluded that the transfer is subject to VAT, as all leases entered into are entered into with the subsidiary, which is why Spørger has changed its intention from VAT-exempt letting to VAT-liable transfer at the latest in connection with the conclusion of these leases.




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