Tax Deprtment

Transfer of Business as a going concern

When a business is sold as a going concern, the transaction is not taxable, if all of the following conditions are true:

- Transfer of all the assets of the business (capital goods, stocks, reputation and customer) or an autonomous part thereof
- The seller is a taxable person
- The buyer is or becomes a taxable person
- The buyer continues, without substantial interruption, a business of the same kind

In this case, the seller should not charge VAT. The buyer is not entitled to a deduction of any amount, even if the seller accidentally charges it. If, as a result of the transfer, the seller ceases to operate, then he must notify the Tax Commissioner within sixty days the the fact by submitting an "Application for Cancellation of VAT Registration" (VAT form 204). In addition, if the buyer becomes obliged to register, he must notify the Taxpayer within 30 days by submitting the relevant registration forms (TD 2001, TD 1101).

The two parties have the right, if they wish, to submit a "Request for Transfer of Tax Rights and Obligations (VAT form 103), after which the seller must deliver his accounting books to the buyer and the buyer assumes the seller's previous obligations and rights. In order to allow the transfer of tax rights and obligations, (a) the whole business must be transferred, (b) the seller's registration is canceled, and (c) the buyer is not already registered but must be obliged to register or register voluntarily . Upon request, the seller's registration is canceled and therefore there is no need to submit a "VAT Registration Cancellation Request". However, the buyer must also submit the relevant registration forms (TD 2001, TD 1101).
Related to the above is the Prospectus 7 "Transfer of an Active Economic Unit" that is only available in greek

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Transfer of a business as a going concern

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