Andrew Needham looks at the consequences of retaining a business VAT number when it is bought as a going concern.
If you buy the trade and assets of a VAT registered business, it can be treated as the ‘transfer of a going concern’ (TOGC) for VAT purposes. This avoids charging VAT on the sale of the business.
Transferring the VAT number
When you buy a business as a TOGC, you have the option of taking over the VAT number of the original owners. You can do this by completing a form VAT 68 and submitting it to HMRC along with VAT1 (application for VAT registration). The previous owner must not submit a VAT7 application for de-registration.
Once the transfer of the
