VATREG37160 - Non-established taxable persons (NETPs): transfers of a going concern

Paragraph 1(2)(b) of Schedule 1A to the VAT Act 1994 requires a person to register if they have ‘reasonable grounds’ for believing they will make taxable supplies in the next 30 days.

This does not apply if the reason for believing they will make taxable supplies is a business, or part of a business, carried on by a taxable person is to be transferred to that person – paragraph 2 of Schedule 1A.

The liability to be registered arises when the transfer takes place, provided the other conditions in paragraph 1 of Schedule 1A are met. The person (transferee) has 30 days from that date to notify HMRC.