The going concern in VAT: proposals for updating the non-sub¡ection rule

Abstract

This work analyzes the problematic aspects of the business unit in VAT, assessing its purpose, the requirements for its application, the consequences arising from its recognition, and the effects of acts carried out aIter its acquisition. It also examines the coherence between the Spanish VAT Law,its interpretation by the Spanish authorities, the VAT Directive and the case law oI the CJEU, as well as the consistency of certain CJEU rulings with the VAT Directive.

The results show a lack oI harmonization between Spanish legislation and the VAT Directive. In addition, contradictions are identified in administrative and judicial doctrine that hinder the uniform application oI the non-taxation regime. The conclusion is that a reform of the provision is necessary to clarify its purpose, requirements, consequences, and to define the abuse of this rule solely on the basis of objective criteria