Recently, the Court of Justice of the EU (“CJEU”) published a decision on the applicability of the scheme regarding the transfer of a generality of goods for VAT purposes.
The transfer of a company scheme (in the Netherlands can be found under Article 37 of the Turnover Tax Act) entails that no VAT is due on the transfer of a company (since no supply takes place for VAT purposes) and that the acquirer replaces the seller’s VAT position. In the present decision of the CJEU, a shopping center was transferred together with all leases by a developer. Although the final decision as to whether this delivery qualifies as a transfer of an undertaking is left to the Polish referring court, it seems that the CJEU sees sufficient grounds to conclude that this arrangement applies.
Source Deloitte
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