{"id":3093,"date":"2026-09-11T11:17:59","date_gmt":"2026-09-11T09:17:59","guid":{"rendered":"https:\/\/www.sgtax.it\/limits-on-the-vat-exclusion-for-the-transfer-of-a-business-by-gift-to-multiple-beneficiaries\/"},"modified":"2026-09-15T10:10:47","modified_gmt":"2026-09-15T08:10:47","slug":"limits-vat-exclusion-transfer-business-gift-multiple-beneficiaries","status":"publish","type":"post","link":"https:\/\/www.sgtax.it\/en\/limits-vat-exclusion-transfer-business-gift-multiple-beneficiaries\/","title":{"rendered":"Limits on the VAT Exclusion for the Transfer of a Business by Gift to Multiple Beneficiaries"},"content":{"rendered":"<p>The transfer of a business, free of charge and in equal shares to two beneficiaries,\u00a0<strong>does not necessarily qualify as a transfer of a totality of assets<\/strong>\u00a0falling outside the scope of VAT.<\/p>\n<p>In its\u00a0<strong>judgment of 9 September 2026, Case T-366\/25<\/strong>, the\u00a0<strong>General Court of the European Union<\/strong>\u00a0examined a transaction whereby an entrepreneur intended to transfer his entire business to his two daughters, granting each of them a 50% interest. The beneficiaries subsequently intended to contribute their respective interests to a jointly owned company that would continue the father\u2019s business.<\/p>\n<p>According to the Court, the initial transfer and the subsequent contributions must be treated as\u00a0<strong>separate and independent transactions<\/strong>. Each beneficiary is free to dispose of her interest and is not legally bound to complete the proposed contribution.<\/p>\n<p>Accordingly, the VAT exclusion under Article 19 of the VAT Directive\u00a0<strong>does not apply<\/strong>\u00a0where the assets transferred to each beneficiary do not constitute a functionally independent business capable, on its own, of carrying on an autonomous economic activity.<\/p>\n<p>The mere intention to combine the interests at a later stage is therefore insufficient. The structure of the transaction and the functional autonomy of the transferred assets should be carefully assessed from the outset, particularly when planning an intergenerational business transfer.<\/p>\n<p><a href=\"https:\/\/infocuria.curia.europa.eu\/tabs\/document\/T\/2025\/T-0366-25-00000000RP-01-P-01\/ARRET\/326270-EN-1-html\" target=\"_blank\" rel=\"noopener\">Read the Judjement<\/a><\/p>\n<p><img decoding=\"async\" class=\"size-medium wp-image-3010 aligncenter\" src=\"https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo-300x137.png\" alt=\"\" width=\"300\" height=\"137\" srcset=\"https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo-300x137.png 300w, https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo-1024x466.png 1024w, https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo-768x350.png 768w, https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo-1536x699.png 1536w, https:\/\/www.sgtax.it\/wp-content\/uploads\/2026\/09\/Tax-Pills_logo.png 1859w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The transfer of a business, free of charge and in equal shares to two beneficiaries,\u00a0does not necessarily qualify as a transfer of a totality of assets\u00a0falling outside the scope of VAT. In its\u00a0judgment of 9 September 2026, Case T-366\/25, the\u00a0General Court of the European Union\u00a0examined a transaction whereby an entrepreneur intended to transfer his entire [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[15],"tags":[],"class_list":["post-3093","post","type-post","status-publish","format-standard","hentry","category-tax-pills"],"_links":{"self":[{"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/posts\/3093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/comments?post=3093"}],"version-history":[{"count":1,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/posts\/3093\/revisions"}],"predecessor-version":[{"id":3096,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/posts\/3093\/revisions\/3096"}],"wp:attachment":[{"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/media?parent=3093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/categories?post=3093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sgtax.it\/en\/wp-json\/wp\/v2\/tags?post=3093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}