Legal support for the sale of LLC with VAT and without VAT

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Shemshur Valeriia

Lawyer, specialist in corporate law practice, specializes in legal support for businesses in the EU, UAE, USA, opening bank accounts, obtaining licenses.

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Legal support for the sale of LLC with VAT and without VAT

Legal support for the sale of an LLC with VAT and without VAT is a set of measures aimed at ensuring the legality and effectiveness of the sale procedure of a limited liability company.

The procedure of legal support for the sale of an LLC has several stages, the main ones of which are:

  • Acquaintance with the documents of the LLC. The lawyer analyzes the founding documents of the LLC, state registration documents, accounting reports, and other documents necessary for the sale.
  • Inspection of the LLC for tax and other obligations. The lawyer checks whether the LLC has tax and other obligations to the state, as well as to counterparties.
  • Coordination of the terms of the contract of sale of the LLC. The lawyer agrees with the parties to the sale and purchase agreement of the LLC and the terms of the agreement, including the price, the payment procedure, the procedure for the transfer of rights and obligations, etc.
  • Drafting and signing of the purchase and sale agreement of the LLC. The lawyer draws up the purchase and sale agreement of the LLC according to the requirements of the law and the conditions agreed by the parties.
  • Submission of documents to the state registrar. The lawyer prepares and submits documents to the state registrar for state registration of changes to the founding documents of the LLC related to the sale of the company.

Why is legal support for the sale of an LLC with VAT and without VAT necessary?

Ensures the legality and efficiency of the sales procedure. A lawyer with experience in the field of corporate law will help to avoid mistakes and risks associated with the sale of an LLC.

  • Reduces the risk of disputes between the parties to the agreement. A legally competently drawn-up LLC sale agreement will help settle all possible disputes between the parties to the agreement.
  • Increases the chances of successful completion of the transaction. Legal support for the sale of an LLC increases the confidence of the parties in the transaction and increases the chances of its successful completion.

The cost of legal support for the sale of an LLC is determined individually, depending on the complexity of the agreement and the scope of work performed by the lawyer.

Now let’s move on to the specifics of legal support for the sale of an LLC with VAT. First, when selling such a company, it is necessary to take into account the tax consequences for the seller and the buyer. When selling an LLC with VAT, a tax transaction arises, which is subject to VAT. The subject of taxation is the transaction of transfer of ownership of property (goods, works, services) for compensation, including cash.

In the case of the sale of an LLC with VAT, the buyer is obliged to calculate the tax liability with VAT at the rate of 20% of the value of the purchased property. The seller has the right to deduct tax liabilities from VAT, which were accrued during the acquisition of such property.

In addition, when selling an LLC with VAT, it is necessary to take into account other tax consequences, in particular:

  • Implications for income tax. When selling an LLC with VAT, the seller has the right to include the cost of the purchased property, which was included in its tax base on the date of purchase, as an expense.
  • Implications for real estate tax. When selling an LLC with VAT, the buyer becomes the new owner of real estate that is part of the LLC’s property. In this regard, the buyer is obliged to pay real estate tax for such property.

A lawyer who provides legal support for the sale of an LLC with VAT must take into account all these tax consequences and ensure that they are correctly reflected in the documents drawn up as part of the agreement.

Here are some of the specific actions that a lawyer must perform as part of the legal support for the sale of an LLC with VAT:

  • Check whether the LLC has VAT tax obligations.
  • Calculate the amount of VAT payable on the sale of the LLC.
  • Draw up a sale and purchase agreement for an LLC, taking into account the tax consequences.
  • Make sure that the buyer pays VAT when purchasing the LLC.

If we are talking about LLC without VAT, the sale does not result in a taxable transaction subject to VAT, while the consequences for income tax and consequences for real estate tax remain.

Legal support for the sale of an LLC without VAT is an important step to ensure the legality and effectiveness of the sale procedure of such a company.

Therefore, we recommend contacting the “Prikhodko and Partners” team for quality legal assistance on this issue.

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Do you have a VAT LLC?

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Are you in Kyiv or the Kyiv region?

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Do you need to sell the LLC urgently?

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Lawyer, specialist in corporate law practice, specializes in legal support for businesses in the EU, UAE, USA, opening bank accounts, obtaining licenses.

Contact now
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