[Question] VAT between connected companies

[Wanch]

Good day everyone

If company A and company B are connected persons because the same person owns both and company A pays for some of company B expenditure, can company B claim VAT on the expenditure paid by company A? Company B is registered on the payment basis.

[Dave A]

Some short posts present a minefield of variables to consider. Trying to figure out the quickest way to cut to the chase here...

Have the two companies got different VAT numbers, or do they share a single VAT number?

[Andromeda]

If company A and company B are connected persons because the same person owns both

On the face of it, that is irrelevant.

The VAT method (invoice versus payment) is relevant to timing of the liability / asset, not the legitimacy thereof.