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VAT on the purchase or sale of a farm?
There are many aspects to consider when buying or transferring a farm. One of these aspects is VAT. The VAT implications of the transfer of an agricultural business are a small part of the process, but can have significant and unintended consequences.
The transfer of a company or of an independent part thereof to someone who continues the acquired company is not subject to VAT. On the basis of Article 37D of the Turnover Tax Act (OB), no delivery of goods and/or services is deemed to have taken place for the purpose of levying VAT. This is because only the person of the entrepreneur changes. The buyer takes the place of the seller.
Article 37D reads: "On transfer of all or part of a generality of goods, whether or not for consideration or in the form of a contribution to a company, it is deemed that no deliveries or services take place and, unless otherwise provided by ministerial regulation, the person to whom the goods are transferred in the place of the transferor."
VAT on purchase or sale of a farm
When an agricultural holding is transferred, the buyer takes the place of the seller and the buying farmer will have to continue the tax regime (normal VAT scheme or agricultural scheme) of the selling farmer, insofar as this concerns the acquired company. What does this mean? What should you keep in mind and which deviations from the rule are possible? You can read it in the white paper VAT on purchase or sale of a farm. Ask the white paper free of charge.
The right choice
The purchase or transfer of an agricultural company has various points of attention in various areas, including VAT. The acconâ– avm VAT advisers can assist you with the transfer or takeover and support you in making the right choices in your company-specific situation.
Ask your question via the advice form and get in touch with the VAT specialists at acconâ– avm.
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