Page 64 - ADVANCED TAXATION - Day 1 Slides

Zero-rated supply: The sale of a going concern (s 11(1)(e))

Calculations
Requirements : RECP673

 Parties agreed in writing that enterprise, or part
thereof, is disposed of as a going concern

 Parties have at the time of conclusion of the contract

agreed in writing that the enterprise will be an income-
earning activity on the date of its transfer

 All the assets necessary for carrying on the enterprise
are disposed of by the supplier to the recipient

 The parties have at the time of the contract agreed in

writing that the consideration for the supply is
inclusive of VAT at the rate of 0%.

 Both the parties (supplier and recipient) must be
registered vendors for VAT purposes