Speed Read: VAT is generally not chargeable on transfers of shares or business assets. Complications can arise if companies are sold out of a VAT group. On cross-border business asset sales it is important to correctly identify the relevant TOGC rules. There have been a number of important developments in respect of recovery of VAT on deal costs. The ECJ judgment in AB SKF should enable greater recovery of VAT in connection with share sales. HMRC's close scrutiny of VAT recoverability means that sellers and buyers should have mitigation of VAT costs in mind from an early stage.