Transfer of Business to Family Foundation Exempt from VAT

• Transfer of business assets to a family foundation is not subject to VAT
• Interpretation issued by the Director of the National Tax Information on April 26, 2024
• The interpretation concerns the transfer of assets to a family foundation by a sole proprietor engaged in real estate rental and leasing
• The transfer includes real estate ownership rights, lease agreements, management agreements, insurance contracts, utility supply contracts, and cleaning service contracts
• The family foundation intends to continue the rental or leasing business unchanged
• The transfer will be made as a one-time legal transaction
• The definition of “business” is provided in the Civil Code and includes various tangible and intangible assets
• The definition of “organized part of the enterprise” is provided in the VAT Act and refers to a financially and organizationally separate part of an existing business

Source: prawo.pl

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.

---

---