- The “withdrawal-before-sale” model allows avoidance of VAT if an item acquired without input tax deduction is withdrawn from business assets before sale.
- No VAT is due upon withdrawal, and the subsequent sale is considered outside the business and is not taxable.
- The Fiscal Court of Lower Saxony has clarified the requirements for this model.
- This approach is based on rulings from the European Court of Justice and the Federal Fiscal Court.
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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