The Value Added Tax (Supply of Services) (Amendment) Order 1998

5.  After article 7 there shall be added—

“8.   Where—

(a) there is a supply of any of the assets of a business of a person (“the transferor”) to a person to whom the whole or any part of that business is transferred as a going concern (“the transferee”), and

(b) that supply is treated in accordance with an Order made under section 5(3) of the Act (or under an enactment re-enacted in section 5(3) of the Act) as being neither a supply of goods nor a supply of services,

the liability of the transferee to tax in accordance with articles 5, 6(b) and 7 above, shall be determined as if the transferor and the transferee were the same person.

9.   Where a transferor has himself acquired any assets by way of a supply falling within paragraphs (a) and (b) of article 8 above, that article shall have the effect of requiring the person from whom those assets were acquired to be treated for the purposes of determining the liability of the transferee to tax in accordance with articles 5, 6(b) and 7 above as the same person as the transferor and the transferee, and so on in the case of any number of successive supplies falling within those paragraphs.”.