The Maltese Value Added Tax Act provides for relief from VAT on the transfer of a business as a going concern basis.
The sale of a business as a going concern is not consideredto constitute a supply for VAT purposes if the prescribed conditions are met.
The prescribed conditions are:
Where the transferee is not registered for VAT purposes under Article 10 of Value Added Tax Act, the Director-General (VAT) may authorise the application of this VAT relief, subject to the additional condition that the transferor should not have benefitted from a credit of input VAT on the acquisition and the accumulation of the assets being transferred.
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