- The article discusses the legal classification of a joint ownership of a property that is subject to value-added tax (VAT) in Germany.
- The author raises questions about whether the joint ownership is a pure joint ownership or a partnership (GbR), and whether a business transfer as a whole under § 1 para. 1a of the VAT Act applies to the entire property or only to 2/3 of it.
- The author also asks whether the seller (A) needs to correct the VAT, either in full or proportionally, if the sale to the joint owners (B and C) is VAT-free.
- The author admits to not being able to answer these questions due to the complexity of the legal issues involved.
- The article discusses the legal status of joint ownership and whether it can be considered an entrepreneur for VAT purposes.
- The Federal Fiscal Court (BFH) has changed its position on the entrepreneurial status of joint ownership, and now considers it unable to provide paid services, and therefore not an entrepreneur.
- However, a recent amendment to the VAT Act states that non-legal person partnerships, such as joint ownership, can be considered entrepreneurs for VAT purposes.
- The author concludes that the legal issues surrounding joint ownership and VAT are still not clear and recommends consulting the guidance issued by the Lower Saxony State Office for Taxes.
Source: nwb-experten-blog.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.
