Article 12 - Surrender of an Economic Activity

A. The surrender of part or all of the Economic Activity by a Taxable Person shall not be considered as a Taxable Supply where all the following conditions are met:

1. The surrender shall include parts of a business that enable the purchaser to engage in an Economic Activity that was surrendered in full or in part by the seller,

2. The Person surrendering his Economic Activity is registered for Tax purposes in the Kingdom,

3. The purchaser is registered for Tax purposes in the Kingdom or has become obliged to register following the surrender,

4. The purchaser shall immediately upon the surrender process, use the Goods and Services acquired to conduct an Economic Activity.

B. The parts of a business mentioned in Clause 1 of Paragraph A of this Article include tangible assets such as fixed assets, rights and other intangible assets, as well as liabilities of the business.

C. Both the seller and the purchaser shall, within thirty days of the date of the surrender, independently notify the Bureau, on a form prepared by the Bureau for this purpose. Where a notification is not formally submitted within the prescribed period, the transfer shall not be considered a surrender and shall be deemed to be a Taxable Supply.