Clive Jones summarises the current treatment and suggests some practical steps to mitigate VAT costs
There have been a number of changes in recent years in the interpretation of the VAT treatment of M & A transactions particularly the recoverability of VAT on deal costs. This article sets out the current position and suggests some practical steps which can be taken to mitigate VAT costs.
Is VAT chargeable on a transfer of shares?
The simple answer is no. This is because a transfer of shares will either be outside the scope of VAT or exempt.
Can a seller recover VAT incurred in connection with a transfer of shares?
The seller will not be able to recover VAT for example on professional fees incurred in connection with a transfer of shares unless the shares are sold in the course of the seller's business. Simply holding shares as an...
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Clive Jones summarises the current treatment and suggests some practical steps to mitigate VAT costs
There have been a number of changes in recent years in the interpretation of the VAT treatment of M & A transactions particularly the recoverability of VAT on deal costs. This article sets out the current position and suggests some practical steps which can be taken to mitigate VAT costs.
Is VAT chargeable on a transfer of shares?
The simple answer is no. This is because a transfer of shares will either be outside the scope of VAT or exempt.
Can a seller recover VAT incurred in connection with a transfer of shares?
The seller will not be able to recover VAT for example on professional fees incurred in connection with a transfer of shares unless the shares are sold in the course of the seller's business. Simply holding shares as an...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
