Pre-registration VAT claim - Good or service | AccountingWEB

Pre-registration VAT claim - Good or service


A client bought a franchise and then registered for VAT. The franchise fee is for a five year agreement.

Can the client claim this as a good or is it a service? As far as I am concerned its an intangible good as it is a resalable asset but in HMRC's guidelines the tangibility of a good is not mentioned. I have stripped out any training etc received as part of the agreement and treated this as a service.

Has anybody any advice?

Thanks in advance.

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Franchise fee is thec supply

shaun king |

Article 14(1), Council Directive 2006/112

David Massey |