BB/6/95 VAT on viability studies
Business Brief, Issue 6 . 28 March 1995
Both the trade and Customs have experienced difficulties in determining who receives the services of an investigating accountant and who is entitled to recover the VAT on those services.
Customs has therefore reviewed its policy and the following new arrangements have been agreed with the Society of Insolvency Practitioners, and will take effect from 1 May 1995.
From 1 May, accountants who are engaged to conduct viability studies will be making supplies of their services to the person who has commissioned the work, instructed them, and who also receives the end product. The direction of the supply does not necessarily follow the direction of the payment for the services. The fact that the company may ultimately pay does not mean that the