- Under the EU TOGC rule, a transfer of a business or autonomous business unit can be outside VAT only if the transferred assets together form an undertaking that the acquirer intends to continue operating; selling isolated assets is not enough.
- In a Polish succession case, gifting the business to two daughters 50/50 did not qualify as a business transfer because neither daughter could independently carry on the business; a later contribution into a joint company did not fix this.
- In a Belgian case, the transfer of a garden center could qualify as a business transfer, but the retained property was then leased to the buyer, and that exempt rental fell outside the TOGC scope, triggering VAT adjustment/recovery of previously deducted input VAT.
- In an Austrian case, an attempt to limit the business-transfer regime by national law was found incompatible with EU law; the court also indicated that a non-remunerated contribution may, if Article 19 does not apply, potentially be treated as a deemed supply/withdrawal.
Source: crowe.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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