Uni 16-09-2021 - On tax obligations and invoicing when auctioning assets for judgment enforcement

Official letter 2638/CTBNI-TTHT on tax obligations and invoicing when auctioning assets for judgment enforcement:

In case of signing a contract with the auction company to auction the assets to secure the loan for judgment enforcement:

- Regarding VAT and invoices: Sale of loan security assets registered with competent authorities in accordance with the law on registration of secured transactions is not subject to VAT. The company is responsible for providing all documents and documents related to the asset auction in accordance with the law on civil judgment enforcement to the auction winner for registration procedures. Transfer of ownership in accordance with regulations and not subject to billing.

- Regarding CIT: In case of asset auction as security to repay bank debt according to court decision, if the auctioned asset's value is not enough to pay the bank's principal and interest, no liability will arise. corporate income tax.