- Transfer of a going concern (TOGC) is when a business or part of a business is sold and meets certain criteria
- TOGC means no VAT applies to the transaction and it is outside the scope of VAT
- TOGC relieves the buyer from funding VAT on the purchase and protects government revenue
- Conditions for TOGC include the assets being sold as part of a going concern, the buyer intending to carry on the same kind of business, and matching VAT positions between buyer and seller
- Indicators for a TOGC include consensus between vendor and purchaser and promised continuity of the business
- Stock transfer may affect VAT application
Source: pricebailey.co.uk
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
