Transact on the hook for £4m VAT bill

Follows HMRC ruling

clock • 1 min read

Transact’s parent company Integrafin has been handed a £4m bill for backdated VAT following a ruling by HM Revenue & Customs (HMRC).

A stock exchange announcement, released on January 28, said Integrafin had been notified by the revenue that its Australian subsidiary software development firm Integrated Application Development (IAD) had been excluded from the UK VAT group on 16 July 2016 - meaning services it provided from that date would be subject to reverse-charge VAT. The business now faces a £4.3m additional VAT charge plus an ongoing bill of £1.4m a year. It said: "The company included IAD in the UK VAT group having taken specialist advice and followed that advice to ensure that the inclusion of IAD's branch ...

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