Commentary

V7.132 VAT registration—transfer of a going concern

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.132 VAT registration—transfer of a going concern

Part V7 Tax planning | Commentary

V7.132 VAT registration—transfer of a going concern

Under Directive 2016/112/EC, art 19, where there is a transfer of the totality of a business' assets, member states are entitled to consider that there has been no supply of those assets but, from a registration perspective, they are also entitled to treat the recipient business as the successor to the transferring business. The UK has adopted this rule. As a consequence, if a person takes over a business as a going concern, then it is necessary to take into account the taxable sales of the previous owner to determine if VAT registration

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