Tax & Legal

The finance ministry has amended its VAT Implementation decree to the effect that a transfer of business premises by way of lease with only a short notice period does not detract from the VAT exemption for transfers of entire businesses.

Following an opinion of the ECJ the Supreme Tax Court held that a sale of a shop’s stock and fittings accompanied by an indefinite lease on the premises cancellable at three month’s notice can be VAT-free as the sale of an entire business, if, in the circumstances, the items transferred are sufficient to enable the purchaser to operate on a lasting basis.