VAT Non-Taxability in Business Transfers and Sales to Third Parties

• The non-taxability of business transfers under German VAT law applies only to transactions between the previous business operator and the new owner
• This non-taxability does not extend to sales made to third parties
• A regional authority, along with a city and a county, were members of a purpose association to build and operate a swimming pool
• In 2013, the decision was made to dissolve the purpose association
• On February 26, 2014, a dissolution agreement was signed
• Under this agreement, the purpose association transferred its assets, including the swimming pool, to the regional authority
• The regional authority committed to maintaining the operation of the swimming pool until June 30, 2023
• The city and the county each made payments to the regional authority for this purpose

Source: datenbank.nwb.de

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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