- No complete business transfer in case of company fragmentation (FG)
- A business transfer is not exempt from VAT if a previously operated business is divided and sold to multiple buyers
- Requirements for a business transfer include the transfer of a business or a separately managed branch of a business in its entirety
- In this case, the acquiring business takes the place of the seller
- The plaintiff operated a solar park and sold parts of it to ten limited partnerships in 2014
- The central infrastructure remained with the plaintiff, while production was carried out by the buyers
- Contracts were made for the buyers to deliver all produced electricity to the plaintiff
- The plaintiff believed these sales were exempt from VAT, but the FG disagreed
- Each transaction involving multiple VAT entities must be evaluated separately for VAT exemption eligibility
Source: datenbank.nwb.de
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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