Trust with Autonomous Relevance for VAT: Implications of Asset Transfer to Trust

• The National Council of Notaries has examined the effects of establishing a trust for VAT purposes.
• The interpretation aims to fill the absence of a comprehensive position on the matter from the tax administration.
• The tax agency has stated that a resident trust must have its own tax code and, if engaged in commercial activities, its own VAT number.
• The first aspect examined is the VAT relevance of the assets transferred to the trust by the settlor.
• Generally, acts carried out by non-business operators or when the assets are of a personal nature are excluded from VAT.
• However, if the transfer involves business assets, it satisfies the objective requirement for VAT.
• The transfer of assets from the business sphere of the settlor to the trust constitutes a transaction subject to VAT.
• One of the scenarios considered is the transfer of a business complex to the trust.

Source: eutekne.info

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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