If HMRC rule there is no TOGC, then they can assess the Vendor. The Vendor can raise a VAT-only invoice to the purchase, who will reclaim it, since he has opted to tax.
But things are not always so smooth! (1) if the contract does not allow the Vendor to request further consideration, then they will have to pay the VAT at 1/6th of the consideration. (2) the contract might contain provision that one party pays the VAT penalties of the other party.
You can't always predict how HMRC will deal with these matters!
Thanks for your reply.
As the purchaser my main concern is weather the purchaser can get the VAT back. Ideally we would never have to pay it but if we really have to then can we get it back?
The answer seems to be YES - we can claim it back as long as we OTT and are vat reg. Even if the OTT is belated, I still think we can claim back the VAT. This is good news.
if this turned out to be 1/6th of the purchase price that would be really great!!!
if it is 20% on top of purchase thats ok as long as we get it back
We don't know how HMRC will act but atleast this lets us breathe again
Thanks