Should VAT be recovered when transferring property to a departing member of a company?

• Transfer of property within the initial contribution to a participant of a business entity upon exit is not subject to VAT.
• If the value of the property transferred to a participant exceeds their initial contribution, the excess amount is subject to VAT.
• When transferring real estate to a participant upon exit, previously deducted VAT amounts must be restored proportionally to the value of the real estate corresponding to the initial contribution.
• The rule that exempts VAT recovery for real estate in use for at least 15 years does not apply to real estate used for production or sale of tax-exempt goods or services.
• This information is provided by the Ministry of Finance of Russia.

Source: garant.ru

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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