- Article 37d of the Dutch VAT Act prevents VAT from being charged on the transfer of a business or an independent part thereof, reducing liquidity and administrative burdens.
- The Dutch Supreme Court has referred preliminary questions to the EU Court of Justice regarding the scope of Article 37d, especially for real estate transactions involving temporarily leased property.
- For Article 37d to apply, a coherent set of assets and liabilities enabling independent economic activity must be transferred.
- In real estate, transferring leased property with ongoing leases can qualify as a transfer of a generality of goods, exempting the transaction from VAT.
- This exemption is particularly beneficial when the buyer has limited or no right to deduct VAT, such as in residential leasing.
Source: accountancyvanmorgen.nl
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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