- EU VAT has a “transfer of a going concern” rule: when a business is transferred, no VAT is treated as charged, and the buyer takes over the seller’s VAT rights and obligations.
- Several EU cases are testing the scope of this rule, especially in real estate: “Roenes” concerns whether the sale of VAT-exempt rented property by a developer counts as a business transfer.
- In “A&P Deco NV,” the issue is whether a business transfer also covers the VAT-exempt lease of the business premises; the likely result is a VAT adjustment for the seller.
- A third case, “D.B.,” concerns the donation of a business, showing that even transfers without payment can trigger VAT questions.
Source: btwinstituut.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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