In essence, it seems that if the owner in passive delivery of the property occupancy authorization only, in exchange for a time-related rent, then the license will be considered a rental of the property for VAT purposes. As a developer, you can provide many other types of goods and services to the local authority or other services, free of charge or for a nominal fee, pursuant to Section 106 of the Town and Country Planning Act 1990 or other similar agreements. These agreements are sometimes referred to as “planning agreements.” We now come to some practical questions. If a tenancy is granted and the landlord`s ability to impose rents and collect VAT is used, this can be done with relative ease in the rental conditions which expressly refers to the exercise of the lender`s tax option. However, in the case of a licence, the first step is to determine whether it is a licence or a service that can be characterized as passive ownership. If this is the case, it is a service provision subject to VAT at the rate of 23%, unless the service provided is subject to a lower VAT rate and the licence agreement clearly states that VAT must be paid, if applicable, in addition to the fee/counterpart. Therefore, the exploitation of intellectual property by the taker does not generate operating income for a certain period of time without payment of royalties under the unpaid licensing agreement, provided that the parties have extended the unpaid relationships for the period for which the taker then paid royalties. If, for its part, his is generally yes, then it is more than likely that a VAT rental is occupied and not a licence, even if it is a licence for the rights of landlords and tenants. The company`s non-operational result, in the form of property rights received without consideration, appears only if there is evidence of transfer or acquisition of intellectual property rights. This can be confirmed by determining the rights holder`s willingness to transfer property rights that may be expressed in a licensing agreement or in some other form (for example).
B, written permission from the rights holder to use a trademark). Moreover, this expression of will cannot be supported by documentary evidence and may arise from an existing business relationship between the parties, including interdependence (for example. B if a party to the licensing agreement has a direct or indirect interest in the capital of another party). For example, a mark may be used without written permission or consent from the rights holder, but under its control. According to judicial practice, the use of trademarks under the control of the rights holder to calculate taxes proves the transfer of the right to use the mark to the subject. Information on land occupancy licences can be found at VATLP05600. However, such a change in the supply contract will result in licence fees paid under the licensing agreement being included in the customs value of imported goods only if the licence agreement subsequently changes. Below are examples of deliveries that are not licenses for land use: Business Brief 25/97 announced that HM Customs and Excise planned to review the definition of the “land tenure licence.” This business letter informs the subjects of the scope of the audit, invites interested parties to comment and defends customs policy during the audit period. As a general rule, any payment you must make as a potential tenant in order to obtain a rental agreement or license is part of that award.