- Business transfers and asset transfers have different VAT implications in the EU.
- Business transfers, or Transfer of Going Concern (TOGC), are generally VAT-exempt.
- Asset transfers typically incur standard VAT rates.
- CJEU rulings clarify these distinctions, aiding businesses and legal practitioners.
- EU Directive 2006/112/EC, especially Article 19, guides Member States on VAT treatment.
- Key elements of a business transfer include tangible and intangible assets, skilled personnel, and operational continuity.
- Business transfers avoid VAT liability; asset transfers do not.
- Practical examples include office complexes and production facilities.
- Lithuanian VAT law aligns with EU legislation and CJEU guidance.
- Input VAT adjustments occur when businesses are transferred.
- Tax administrators assess transaction classifications based on various factors.
Source: vatabout.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.
