Page 64 - ADVANCED TAXATION - Day 1 Slides

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

Calculations
: RECP673
Requirements

 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