VAT is an important consideration for both the buyer and seller when a business is being transferred. The risk of getting the VAT treatment incorrect can be costly for both buyer and seller.
There are two options when buying a business –
- Purchase of shares in a limited company
- Purchase of the assets of the business
The VAT treatment is different for each option and each option has different VAT risks. Here we will share the key considerations relating to VAT when buying or selling a business, but we strongly recommend speaking to an expert for advice too.