Germany: Sale of bad debts without recourse is not a provision of services
Real Estate Tax Services Newsalert ()
Sale of bad debts without recourse is not a provision of services
The ECJ has held that the purchase of defaulted debts at a price below their face value and without further recourse to or obligations towards the seller is not a supply of services for a consideration and no economic activity by the purchaser, when the difference between the face value of those debts and their purchase price reflects the actual economic value of the debts at the time of their assignment.
