{"id":4168,"date":"2021-04-29T04:00:00","date_gmt":"2021-04-29T04:00:00","guid":{"rendered":"http:\/\/im-21741"},"modified":"2023-01-11T11:11:15","modified_gmt":"2023-01-11T11:11:15","slug":"vat-transfer-as-a-going-concern","status":"publish","type":"post","link":"https:\/\/www.oneaccounting.co.uk\/vat-transfer-as-a-going-concern\/","title":{"rendered":"VAT \u2013 transfer as a going concern"},"content":{"rendered":"<p>The transfer of a business as a going concern (TOGC) rules concern the VAT liability of the sale of a business. Normally the sale of the assets of a VAT registered or VAT registerable business will be subject to VAT at the appropriate rate.<\/p>\n<p>Where the sale of a business includes assets and meets certain conditions the sale will be categorised as a TOGC. A TOGC is defined as &#39;neither a supply of goods nor a supply of services&#39; and is therefore outside the scope of VAT. Under the TOGC rules no VAT would be chargeable on a qualifying sale.<\/p>\n<p>All the following conditions are necessary for the TOGC rules to apply:<\/p>\n<ul>\n<li>The assets must be sold as part of a &#39;business&#39; as a &#39;going concern&#39;. In essence, the business must be operating as such and not just an &#39;inert aggregation of assets&#39;.<\/li>\n<li>The purchaser intends to use the assets to carry on the same kind of business as the seller.<\/li>\n<li>Where the seller is a taxable person, the purchaser must be a taxable person already or become one as the result of the transfer.<\/li>\n<li>Where only part of a business is sold it must be capable of separate operation.<\/li>\n<li>There must not be a series of immediately consecutive transfers.<\/li>\n<li>There are further conditions in relation to transactions involving land.<\/li>\n<\/ul>\n<p>The TOGC rules can be complex, and both the vendor and purchaser of a business must ensure that the rules are properly followed. The TOGC rules are also mandatory which means that it is imperative to establish from the outset whether a sale is or is not a TOGC. For example, if VAT is charged in error, the buyer has no legal right to recover it from HMRC and would have to seek to recover this &#39;VAT&#39; from the seller.<\/p>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Wed, 28 Apr 2021 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The transfer of a business as a going concern<\/p>\n","protected":false},"author":1,"featured_media":4169,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,144],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>VAT \u2013 transfer as a going concern - One Accounting<\/title>\n<meta name=\"description\" content=\"The transfer of a business as a going concern\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.oneaccounting.co.uk\/vat-transfer-as-a-going-concern\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"VAT \u2013 transfer as a going concern - 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