- Supreme Court rules on appeal regarding VAT and supply of goods.
- Appeal concerns provisional VAT settlement for 3Q of 2010.
- Court decides if asset transfer during joint ownership dissolution is subject to VAT.
- Court rules that such transfers are subject to VAT even if leasing continues.
- In leasing cases, real estate transfer may be considered an independent economic unit.
- Application of VAT Act section 7(1) depends on specific case circumstances.
- Factors include type of economic activity and transferee’s business intentions.
- Objective factors of the transaction may influence the application of section 7(1).
Source: crowe.com
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.
