VAT between connected companies

**Wanch** · 10-Dec-21, 03:18 PM

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** · 10-Dec-21, 03:59 PM

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** · 10-Dec-21, 08:05 PM

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.