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Is vat chargeable on capital sale

henryd65 · 2016-07-06 09:34:14

Looking for some help on a vat issue: Company A, a vat registered Irish company is selling the intellectual property rights of product X, a software product, to Company B, also an Irish company. This is a capital sale, not a license agreement. A will have no further control over X. Is vat chargeable on the sale ?

06-07-2016 9:34am

#1

henryd65

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Join Date: November 2006

Posts: 77

Looking for some help on a vat issue:

Company A, a vat registered Irish company is selling the intellectual property rights of product X, a software product, to Company B, also an Irish company. This is a capital sale, not a license agreement. A will have no further control over X.

Is vat chargeable on the sale ?

0

Comments

#2 06-07-2016 11:32am

DmanDmythDledge

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Whether a sale is of a revenue (short-term) or capital (long-term) nature will not have any bearing if the transaction is VATable or not.

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#3 07-07-2016 12:38pm

dbran

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Is it not effectively the sale of a business which is capable of functioning as a going concern on its own.

It is not a supply for VAT purposes and consequently no VAT applies.

http://www.revenue.ie/en/tax/vat/leaflets/transfer-business.html#section5

dbran

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