Leasing termination and property transfer tax implications for municipalities without business organization.

• A company leasing a school building from a municipality must pay VAT at the standard rate when exercising the right to withdraw from the lease agreement
• The sale of real estate by a municipality is not subject to tax if the municipality does not have a business organization aimed at achieving economic results
• The answers to inquiries 162 and 163 from the Revenue Agency clarify these points
• The case discussed in inquiry 162/2024 involves a municipality leasing a building for a civic center, with the municipality exercising the right to withdraw before taking possession
• The Revenue Agency clarifies that municipal buildings are not considered primary or secondary urban development works, so the VAT rate for the financial agreement should not be 10%

Source: eutekne.info

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.