Divisional registration

By Tolley
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The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Divisional registration
  • What is a divisional VAT registration?
  • Conditions
  • Applying for a divisional VAT number
  • Implications of a divisional registration

This guidance note provides an overview of the rules relating to divisional VAT registrations.

What is a divisional VAT registration?

Only a body corporate can have a divisional VAT registration.

VATA 1994, s 46(1); VGROUPS09000; Notice 700/2 De Voil Indirect Tax Service V2.190A (subscription sensitive)
Body corporate

A body corporate includes the following types of entities:

  • public limited company - that are limited by shares or guarantee with share capital
  • private companies - that are limited by shares, guarantee with share capital or a guarantee
  • unlimited companies
  • incorporated by an Act of Parliament for a named body
  • incorporated by an Act of Parliament for an entire class of body (eg Building Society Act 1986)
  • formed by Royal Charter (eg the BBC)
  • body corporate that has been formed in another jurisdiction
What is a division?

A entity will be treated as trading in divisions if the following are satisfied:

  • there are two or more departments, sites or branches which operate their own accounting units within the UK, and
  • the departments, sites or branches either trade in different geographical areas or carry out different functions and have separate accounting systems in operation
Conditions

HMRC will only approve a request to create a divisional registration in the following circumstances:

De Voil Indirect Tax Service V7.172 (subscription sensitive); VGROUPS09100

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