VAT Liability of Transfer Companies in Corporate Restructuring: BFH Ruling on Social Service Exemption

• A certified provider managing a transfer company during corporate restructuring provides a taxable service to the former employer, including additional payments.
• This service is not exempt from VAT as a service closely linked to social welfare or social security.
• The transfer company employs workers temporarily and receives payments from the employment agency.
• Contracts are made between the transfer company, the former employer, and the employee, along with agreements with the works council and for implementing social plans.

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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