The following drafts were published:
- Draft amendments to VAT practice Subject: Measures based on COVID-19: The draft includes in particular how hardship measures are to be assessed. A-fonds-perdu contributions are considered subsidies and can lead to a reduction in input tax.
- Draft amendments to VAT practice Subject: Tax succession / liability: The draft includes the implementation of BGE 146 II 73, according to which there should always be tax succession in the event of the transfer of an entire estate (cf. also our article of 15 March 2020 regarding ruling 2C_923/2018). In the case of the acquisition of a partial asset, Art. 16 para. 2 VAT Act should, according to the draft practice, only apply if the corporate entities involved are closely related persons. Thus, in the case of third-party transactions, no tax succession would occur if only a partial asset is transferred.
The deadline for comments is 2 March 2021.
All drafts of the practical definitions of the VAT department are available here.
