Commentary

V3.396 Acquisitions—accounting, payment and input tax

Part V3 Supplies, acquisitions and imports

V3.396 Acquisitions—accounting, payment and input tax

V3.396 Acquisitions—accounting, payment and input tax

This paragraph explores accounting, payment and input tax matters associated with acquisitions. It should be read in conjunction with the other sections in this Division on the subject of acquisitions, in particular V3.361 which looks at the meaning of acquisition, the identity of the acquirer and when there is a charge to acquisition VAT and V3.388B which addresses warehousing and fiscal warehousing.

Acquisitions—accounting and payment

The rule that tax becomes due at the time of acquisition1 is subject to provisions about accounting and payment. For the time of acquisition, see 'Time of acquisition' at V3.388 and for the charge to tax on acquisitions, see 'The charge to tax on acquisitions' at V3.361.

Separate accounting and payment provisions apply to taxable persons on one hand and persons who are not taxable persons on the other.

A common exception to these provisions applies in relation to dutiable goods. There is also a special charge in respect of deficiencies in fiscally warehoused goods.

General rule—taxable persons

A taxable person must account for and pay tax in respect of an acquisition2. This tax is referred to as 'output tax'3. A taxable person must account for and pay output tax by reference to prescribed accounting periods at the time, and in the

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