Tax Treatment of Client Portfolio Transfer by a Professional Ceasing Activity: VAT, Registration, Direct Taxes

• A professional accountant plans to cease activity, selling only the transferable part of their client base (consultancy contracts) to a colleague, with payment in three annual installments.
• Physical assets (computer, printer, phone, car) are fully depreciated and will not be transferred to the colleague; some will be retained for personal use.
• The professional has no employees, no additional assets or liabilities, and all suppliers are paid up.
• The main question concerns the correct VAT and direct tax treatment of the installment payments received for the client base transfer.

Source: agenziaentrate.gov.it

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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