Hi all
We have been subcontracting part of the service that our company offers for a while and have now agreed to sell this to the subcontractor under a purchase agreement which states the sale is a sale of service provision only. Payment will be made by instalments each month for the next 12 months.
Is this amount subject to VAT or not?
Thanks in advance for any replies
Replies (1)
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Sale of business?
The VAT-free Transfer of a Going Concern requires that the portion being sold is capable of separate operation as a business. This must include all the assets to continue the business. From your description this seems unlikely, as the sub contractor is already carrying on the work. You would need to determine more precisely what is being transferred over.