- Article 37d of the Dutch VAT Act prevents VAT from being charged on the transfer of a business or an independent part thereof, reducing liquidity and administrative burdens.
- The Dutch Supreme Court has referred preliminary questions to the EU Court of Justice regarding the scope of Article 37d, especially for real estate transactions involving temporarily leased property.
- For Article 37d to apply, a coherent set of assets and liabilities enabling independent economic activity must be transferred.
- In real estate, transferring leased property with ongoing leases can qualify as a transfer of a generality of goods, exempting the transaction from VAT.
- This exemption is particularly beneficial when the buyer has limited or no right to deduct VAT, such as in residential leasing.
Source: accountancyvanmorgen.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"
- European Court – T-555/26 (Gemeinde A) – Questions – Automated facility and subcontractor staff: fixed establishment for VAT liability
- EU Operation Goliath: EPPO Secures Germany’s First Criminal Organization Conviction in €200M VAT Fraud
- EU Parliament Calls for Stronger Coordination Against VAT Fraud
- EU backs anti-VAT fraud measures extension until 2030
- EU Launches NCTS Phase 6 for Modernized Customs and Transit Procedures
