Does a management agreement show that a transfer of the entire management of a company has taken place? This can lead to a break in the organizational interdependence of two VAT entrepreneurs. And thus not meeting the conditions for a fiscal unity turnover tax.
On November 19, 2007, a BV was established, which was a joint venture between a foundation and a holding company. The foundation held 50.6% of the shares in the BV. This foundation operated a care institution with houses and day care centers for the disabled and psychiatric patients. Its services were mainly exempt from VAT. The holding company had a 49.4% interest in the BV. In addition, the holding company held all the shares in a working company. This company operated as a cleaning company and specialized in cleaning buildings. The activities of the working company were subject to VAT. The foundation was its sole customer. At the beginning of October 2012, the BV set up a subsidiary to move the non-cleaning activities there.
Source Taxence
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