Article 17 - Transactions not falling within the scope of Tax- transfer of an Economic Activity

1) The transfer by a Taxable Person of Goods and services forming a part of his Economic Activity, is not a Taxable Supply of Goods and services by that Person in the course of an Economic Activity and is therefore not a Supply subject to Tax, provided that all of the following conditions are met:

a) the Goods and services transferred are capable of being operated as an Economic Activity in their own right, and the recipient immediately following the transfer uses those Goods and services to carry on that same Economic Activity,

b) the recipient is a Taxable Person or becomes a Taxable Person as a result of the transfer,

c) the Supplier and the recipient agree in writing that they wish the transfer to be viewed as the transfer of an Economic Activity for the purposes of these Regulations.

2) Where a transfer on the contractually agreed date of an Economic Activity takes place, the recipient Taxable Person assumes the place of the Supplier for any rights and obligations which will arise in the future for the purpose of the Law and these Regulations.

3) In cases where the transfer of an Economic Activity results in the Supplier or recipient of that Economic Activity being required to register or deregister, notification must be provided to the Authority within thirty (30) days of the transfer date.

4) The Supplier of an Economic Activity must provide copies of all business records relating to that Activity which are required to be retained by the Law to the recipient of that Economic Activity.