As a VAT registered business trading with another VAT registered business, yes tax is payable but is then claimed back against VAT owing to HMRC from income at the end of the business year. Unless things have changed and the VAT man wants less than he did 20 years ago, (unlikely).HuddsTigers wrote:Didn’t know players were taxable products?
So as far as I understand, yes we would pay VAT on hardaker's transfer fee (about £30k on £150,000 if that was the figure) but would be able to claim it back at the end of the tax year so no extra cost to us. Leeds would receive that £30k but have to give it to HMRC at the end of the tax year so no extra gain for them.
Another example of how all western governments use every opportunity to gain income. In this case as it's between 2 businesses the net gain all round is nothing, however if you or I were to purchase Zak Hardaker's playing contract we would be shafted for an extra 30 grand that we'd never see again.
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