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VAT68 on company acquisition

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I've never completed a VAT68 or VAT1 before for an acquisition, now HMRC are saying I must. However the old director/owner won't co-operate with anything from now on.

Questions are:

1. Given he won't sign, what do I do?

2. Is this actually necessary each time?

3. When I know the answer to #1, do I need to go back and complete the forms retrospectively for all other acquisitions?

Replies (3)

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By Les Howard
06th Nov 2019 10:30

You are not required to complete a VAT 68 unless you want to retain the vendor's VAT number. Since he is being obstructive I would advise against it.
Whether you need to complete a VAT 1 depends on the nature of the acquisition. Have you bought the business, or bought shares in the business? (Either way I suggest you engage a specialist to walk you through this and check the documentation carefully.)

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Replying to leshoward:
By atleastisoundknowledgable...
06th Nov 2019 11:59

Purchased 100% of the share capital in the company

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Hallerud at Easter
06th Nov 2019 12:08

My question would be which firm of solicitors dealt with the sales documentation, if any- to buy shares without clearly placing an obligation re certain levels of performance by the seller verges on negligent- tell your client to either implement enforcement if covered in the contract or get new solicitors if not in the contract or to use solicitors for these sorts of things in future if he/she purchased on a DIY basis.(and if they did they really are idiots)

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