- Portuguese tax authorities recently ruled that a business transfer as a going concern is not subject to VAT if the transferor exclusively performed exempt activities and could not deduct any input VAT
- This decision applies specifically to cases like insurance distribution activities
- This ruling contradicts a previous 1989 interpretation where it was believed that VAT should be assessed if the business was transferred to an exempt VAT taxpayer
- The new ruling indicates a shift in the application of the out-of-scope rule for VAT in business transfers
Source: taxand.com
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.
