Assignment of rights and obligations

Magdalena Jaworska discusses VAT taxation of the assignment of rights and obligations from preliminary contract for the sale of a property. Is this supply of goods or supply of services for VAT purposes?

Assignments of rights and obligations from preliminary contracts for the sale of properties are very common on the market of property transactions. This is because, in practice such an assignment constitutes an act on the path to acquiring a property, in particular from a developer (whether it is residential or commercial property). The purpose of the article issued in November Tax Law Review was to discuss the doubts that exist in the relation to taxation with value added tax of an act consisting in assigning rights and obligations from a preliminary contract for the sale of a property.