- The CJEU General Court held that a donor’s transfer of a sole proprietorship in two equal 50% shares to two daughters does not qualify as a transfer of a totality or part of assets under Article 19 of the VAT Directive.
- The Court treated the gift and the daughters’ later contribution of their shares to a civil partnership as separate transactions, not a single indivisible supply.
- A 50% undivided share is not, by itself, an autonomous set of assets capable of independently carrying on an economic activity.
- Therefore, the VAT non-taxation/exclusion for transfers of a going concern does not apply to this split transfer.
Source: btwjurisprudentie.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.
Latest Posts in "European Union"
- Germany: Two Convicted in €200 Million VAT Fraud and Hawala Money Laundering Scheme
- EU Triple-Chain VAT Invoice Correction Case in Austria
- VATupdate’s Free Interactive Tool: ECJ & General Court VAT Case Finder: 1,315 VAT cases searchable by article, sub-article, topic and status
- VATupdate’s Free Interactive Tool: EU E-Invoicing & E-Reporting Matrix – Check Every Scenario, in Every Member State
- EGC Customs T-28/25 (Hauptzollamt A) : AG Includes Design Costs and Component Buying Commissions in Customs Value
