Transfer of functional units is not considered as VAT delivery
August 10, 2012
August 8, 2024
.png)
.svg)
.svg)
Minister of Finance has adopted Regulation amending Regulation on establishing the transfer of entire or a part of assets, with or without compensation, or as an investment, which is not considered a supply of goods and services according to the Law on Value Added Tax (Amendment Regulation).
Amendment Regulation was published in "Fig. Gazette of RS " no. 76 of 04.08.2012 and apply from 05.08.2012.
Under Amendment Regulation the delivery of following goods and services are not considered as VAT delivery: - Transfer of assets in the continuation of the activity of entrepreneurs in the form of a company, in accordance with the Company Law, - Transfer of assets in the ordinary course of trade, liquidation and bankruptcy, which is a functional unit within economic activities are carried.
In this way, Amendment Regulation introduces two additional grounds for determining assets transfer tax which is not considered as VAT delivery.
.svg)