This alert concerns the decision of the Tax Court of Nuremberg (2 K 309/16) from 23 February 2021.
The going concern value-add tax (VAT) relief for VAT purposes can be granted in case of a share deal (transfer of a subsidiary) if the transferred company is part of a VAT group on the side of both the seller and the buyer. In the case at hand, however, the court refused to accept the relevant VAT group, as the required domination of the subsidiary failed due to an insufficient “managing directors’ resolution” (this concept is regularly used in practice; hence, companies should review their VAT group structures).
Source Baker & McKenzie
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