Vat Settlement Agreement

In view of the above, sellers subject to out-of-court transactions, in particular the seller who receives payment of a transaction amount, are reminded of the importance of explicitly indicating, in the transaction agreement, for what the settlement is made and whether the agreed settlement is exclusively or VAT included when VAT is to be paid. If the VAT transaction agreement has remained silent, the payment is considered VAT included when it is made for the services provided. As a result, the seller who receives such a payment is required to deduct the exit tax from the amount of the statement up to the share of the tax, so that the recipient remains out of his pocket and ultimately settles for less. Since the press release, very few cases have been brought to the center of the turnover tax. Cooper Chasney LON/89/1409Z (VATSC06834) and Edenroc LON/88/1047X (VATSC06170) were notable exceptions. . . .

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