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.