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Vat On Licence Agreements

IP Draughts recently participated in the collection of tax advice on structuring agreements with a Gibraltar company. The client, a private technology company, has been careful to ensure that the transaction does not generate significant tax risks or tax savings. Clients and IP draughs were pleasantly surprised at how ground-friendly and user-friendly the tax advisors were. The Council has been practical and decisive. Behind the scenes, IP Draughts and his colleagues had worked hard to find the right, experienced tax lawyer, who included both British and Gibraltar taxes, was used to help individuals and SMEs, did not cost a fortune and had time to help us. There were a couple of names at the London Bar. The rental of garages or car parks in connection with the rental of permanent residential dwellings (under leases or other) is exempt from tax, provided that it is obliged to pay money or money to a municipality or a third party, in addition to buildings or structures, under Section 106 of the Town and Country Planning Act 1990 and other similar agreements. For example, they may pay money for the future maintenance of a building or land or to help improve infrastructure. These amounts do not constitute a consideration for taxable deliveries made to you by the local authority or by the third party.

The granting, transfer or surrender of interest to, the right to over or the license to occupy real estate is generally exempt from VAT. There are exceptions to this general exception: where agreements allow a different number of parking spaces from one year to the next, this generally does not affect the location of parking spaces as part of a single supply of commercial space. For examples of deliveries that are land occupancy licenses, see paragraph 2.6. See paragraph 2.7. Payments made under IP licensing agreements are in principle subject to VAT as payments for “mental health services.” The VAT regime applies at EU level. VAT legislation is complex, but in summary: (a) invoices from a UK licensee to a British licensee should include a need for VAT on payment; b) Invoices from a UK licensee addressed to a licensee in another EU country probably do not contain VAT – VAT is charged by the taker as part of a complex process of self-iliding the local authority of the value-added tax, but VAT is not paid to the licensee and c) invoices from a British licensee to a non-EU licensee are unlikely to be subject to VAT, as they do not fall within the scope of VAT. However, specific rules may apply, for example.B. Payments resulting from litigation may be treated differently. However, if it is found to be a VAT rental, but it must retain a licence status for landlords and tenants and ensure that it is subject to VAT, you have to be very careful about the terms used. Clearly, an explicit reference to the exercise of the lessor`s tax option could affect the position of the landowner, namely that it is a licence and not a lease for the purposes of a landlord or tenant. Therefore, it is important to ensure, with appropriate wording, that a rental is chosen for VAT purposes, in addition to the licence tax/value-added tax.