- The EU General Court held that a new commercial lease is separate from a transfer of a business as a going concern (TOGC), so it does not fall under the TOGC no-supply treatment.
- If the seller keeps the premises and leases them to the buyer under a VAT-exempt lease, the seller must adjust (claw back) input VAT previously deducted on the property.
- This adjustment applies even if the buyer continues taxable activities on the premises.
- The seller’s VAT adjustment obligation cannot be shifted to the buyer.
Source: internationaltaxreview.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.
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