Stock taken over by new owner..

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
The lady has taken over a shop and i have a stock appraisement summary from stock takers. The VAT exclusive total is given.
Question is.... Why didnt she pay VAT on the vatable items? The stock takers have listed "basic cost of standard rated stock" and that is what she paid.
I must be missing the point somewhere! PLEASE would someone point me in the right direction!! :?

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock taken over by new owner..

    When they say "basic cost of standard rated stock" do they mean the cost before VAT? How do you know that the VAT was not paid by the previous owner?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock taken over by new owner..

    I pressume it means excluding vat as the final figure at the bottom says "VAT exclusive total", and this is what she paid.

    This is why i am confused. The previous owner must of paid VAT on the purchase of these items, then sells them on, obviously including VAT. Just because he is selling them onto another business, doesn't mean he excludes VAT does it?!

    CONFUSED! very CONFUSED! :?


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock taken over by new owner..

    If the previous shop owner was Vat registered and the transfer was as a going concern , then the seller does not have to account for vat on the sale consideration. The purchaser has no input vat to recover provided the purchaser is a taxable person or becomes a taxable person immediately following the sale. Does that help?

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock taken over by new owner..

    Thank you for that Ian. It helps alot! :D
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Stock taken over by new owner..

    Glad to help.

Categories

Privacy Policy