Marvin Reynolds and Lyndon Firth (BDO) provide a refresher guide on the tests for TOGCs for VAT purposes.
Overview
Special rules provide that the sale of assets as part of a TOGC is not treated as a supply of goods or services for VAT purposes (VATA 1994 s 49; the Value Added Tax (Special Provisions) Order 1995 SI 1995/1268 article 5; the VAT Regulations SI 1995/2518 reg 6).
The TOGC provisions have two main purposes:
to relieve the buyer of a business from the burden of funding any VAT on the purchase helping businesses by improving their cash flow and avoiding the need to separately value assets which may be liable to VAT at different rates or are exempt and which have been sold as a whole; and
to protect government revenue by removing a charge to tax and entitlement to input tax...
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Marvin Reynolds and Lyndon Firth (BDO) provide a refresher guide on the tests for TOGCs for VAT purposes.
Overview
Special rules provide that the sale of assets as part of a TOGC is not treated as a supply of goods or services for VAT purposes (VATA 1994 s 49; the Value Added Tax (Special Provisions) Order 1995 SI 1995/1268 article 5; the VAT Regulations SI 1995/2518 reg 6).
The TOGC provisions have two main purposes:
to relieve the buyer of a business from the burden of funding any VAT on the purchase helping businesses by improving their cash flow and avoiding the need to separately value assets which may be liable to VAT at different rates or are exempt and which have been sold as a whole; and
to protect government revenue by removing a charge to tax and entitlement to input tax...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
