Commentary

B9.127 Incorporation—VAT aspects

Business tax
Business tax | Commentary

B9.127 Incorporation—VAT aspects

Business tax | Commentary

B9.127 Incorporation—VAT aspects

VAT is outside the scope of this publication but clearly VAT issues are a necessary consideration of any decision whether to incorporate, so this article highlights some of the relevant issues.

Incorporation itself does not create an obligation on a low turnover business to register for VAT, unless the pre-incorporation business turnover is expected to increase beyond the VAT registration limit.

Most incorporations will satisfy the criteria for a Transfer of a Going Concern (TOGC), so that the transfer of assets such as goodwill, plant and stock will be ignored for VAT purposes and no VAT invoice need be

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