In a case of business transfer, a mediation process concluded with a compensation settlement, resulting in no VAT liability. A and his spouse B were partners in a local welfare organization and a development-oriented care institution. To ensure continuity of their developed care method, they transferred their business to a newly established foundation, Y, of which A and B became directors. However, disagreements arose later regarding the agreed roles and the value of the transferred business. After mediation, a settlement was reached in March 2019, involving a one-time payment of €350,000 by Y. The court ruled that this payment was part of the 2014 business transfer, exempting X from VAT obligations.
Source: futd.nl
