selling a business...does a potential buyer ....

[leedslassy]

have to have access to our VAT returns?

He has had our audited accounts and in fact has asked our accountant to take him on. He has also had copy of tenancy agreement but is now still delaying paying his deposit saying he wants VAT returns.

My opinion is that they are ours and whatever he pays in VAT will be erlative to what business he does - not what we have done. Additionally, we have 2 businesses but have one VAT return and so the details will be reflective of what the overall businesses do not just the one he is possibly buying.

.

Don't know the answer but does this help maybe?

Hi leeds lassy
I work for a large accountany firm and specialise in buying and selling businesses. The ownership of the books and records including the VAT returns depends on whether or not you are selling shares in a limited company. If you are then any books and records of the company will belong to the purchaser after the sale and the purchaser will also be responsible for settling any outstanding creditors that you owe. If this is the case then he may want to see the returns to verify how much if anything you owe.

If you are not selling shares in a company but are selling business assets separately then the VAT returns belong to you after the sale. However a purchase may wish to look at them before a sale in order to verify the information you have given him during the sales process, this is what we call "due diligence" and is a normal part of a business sale.

Hope this helps
A-M