Readers' forum : Tax but no invoices

I have a client that recently transferred its business of buying and selling agricultural machinery to a subsidiary company. The holding company has retained the trading property and will charge rent to the new company at a commercial rate.

The problem is VAT for the period 1 April to 30 June this year the first three months of the new company taking over the activity. All of the purchase invoices for these months have been issued by suppliers to the old company including C79 certificates for imported goods. But the new company has paid for all of these goods and also the VAT and duty on imports. The goods have all generated sales for the new company or are held as stock until they are sold.

Which company should claim input tax on the expenses in question? Also both companies are registered for intrastat (arrivals only). Which...