Commentary

V3.361 Acquisitions—meaning, identity of the acquirer and the charge to tax

Part V3 Supplies, acquisitions and imports

V3.361 Acquisitions—meaning, identity of the acquirer and the charge to tax

Acquisitions and acquisition tax (prior to IP completion day)

V3.361 Acquisitions—meaning, identity of the acquirer and the charge to tax

This paragraph examines what an acquisition is and when it is chargeable to VAT in the UK. It covers the following topics:

  1.  

    •     an overview of the transitional regime and the concept of acquisitions

  2.  

    •     the meaning of acquisition

  3.  

    •     the identity of the person making an acquisition

  4.  

    •     the place of acquisition (ie when an acquisition takes place in the UK)

  5.  

    •     the charge to VAT on acquisitions (including the applicable rate and who is liable for it)

  6.  

    •     relief from acquisition tax in certain circumstances

This paragraph should be read in conjunction with the other articles on the subject acquisitions in this Division. In particular it does not cover:

  1.  

    •     the valuation of acquisitions (see 'Time of acquisition' at V3.388)

  2.  

    •     the tax points of acquisitions (see 'Valuation of acquisitions—general rule' at V3.388)

  3.  

    •     simplifications to the normal acquisition rules for certain triangular supplies and supplies of installed or assembled goods (see V3.388A and V3.388AA)

  4.  

    •     accounting, payment and input tax (see V3.396)

Overview of the transitional regime

On 1 January 1993, amendments to the Sixth Directive1 came into force giving effect to a transitional regime establishing an 'internal market' for the free movement of goods, persons, services and capital. This transitional system was to have applied until the date a definitive system, based on the principle of taxing goods and services in the member state of origin, was

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial