VAT on sale of assets

Sale to non-UK business

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Hi,

UK company (VAT registered) is selling the entire usage rights to a company outside the UK and outside the EU.  The software is business related and will be for business customers only.  Does the sale of the asset (i.e. the software/IP) fall within zero rating or outside the scope?

I assumed outside the scope of UK VAT.

Many thanks for your help.

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chips_at_mattersey
By Les Howard
03rd Apr 2024 13:43

I would lean towards an outside the scope TOGC, subject to to satisfying the legislative tests. If not, an outside the scope B2B supply.
(I am not sure the supply can be zero-rated.)
You should cross check the details against Notice 741A in the first instance.

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