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Thread: VAT liability for the business I am buying

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    VAT liability for the business I am buying

    Hi
    I am in the process of buying a business that is not VAT registered. It should have been registered. As the new owner can I be liable for any liability that could be accrued to the previous owner?
    thanlks

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    Diamond Member Justloadit's Avatar
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    The short answer is yes.

    However, when you buy a business, you buy the debtors and creditor contacts and not the debtors or creditors book, and any asset and stock only, you never buy the company as such. This is standard practice. In this way you start trading from a clean sheet. The seller then gives you the irrevocable right to use the company name in your new business. You want a new registration number and bank account.

    It then becomes the sellers problem to collect payments till the date of ended trading, and payment of any creditors till date of end of trading.
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