Page 31 - F6 Slide - VAT Part 2 - Lecture Day 5

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