Transfer of Business: VAT Deduction Rights in Extraordinary Operations and Business Conferment

• In case of transferring a company or its branch, the transferee may receive invoices related to the transferred business before the completion of the extraordinary operation
• It is necessary to determine whether the transferor or transferee is entitled to the deduction of the VAT paid
• The transfer of an individual company to a partnership or corporation constitutes a transfer of the company, including tax credits owed to the tax authorities
• The same principle applies to the transfer of a company from one company to another
• The transferee inherits the right to deduct VAT from passive operations before the transfer
• However, this principle can be overridden by the parties’ agreement, allowing the exclusion of the VAT credit from the transfer of the business assets.

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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