Assignments made by cooperatives to divided property subject to VAT: implications for members

• Assignments of housing units by cooperative to divided property are subject to VAT
• Assignments of housing units by cooperative to undivided property are also subject to VAT
• The consideration for the assignment is the sum of payments made by each member
• VAT is payable at the time of payment of rent for housing units
• Possession and management of real estate by cooperative for personal or family use is not considered commercial activity
• Inability to collect rent from members inhibits the cooperative’s liability for VAT deduction

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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