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HMRC internal manual

VAT Transfer of a going concern

HM Revenue & Customs
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Article 5 VAT (Special Provisions) Order 1995: Same kind of business: customer base: wholesale v retail

If a purchaser of a business sells to retail customers where the seller of the business made supplies to wholesalers, this is not necessarily a different kind of business. In the case of Village Collection Interiors Ltd, (LON/90/1882) the seller was in business manufacturing furniture which was sold (wholesale) to a company with 16 retail shops. The retailing company bought the seller’s business, and the tribunal decided that the purchaser carried on the same kind of business - manufacturing and selling furniture - as the seller, despite the switch from wholesale to retail sales.