Commentary

BB/30B/02 VAT—VAT groups—protection of the Revenue

Part V16 Forms and other HMRC material

BB/30B/02 VAT—VAT groups—protection of the Revenue

BB/30B/02 VAT—VAT groups—protection of the Revenue

This article provides businesses with further guidance about VAT grouping structures. Customs will not use their revenue protection powers to challenge acceptable grouping structures.

VAT grouping rules

The VAT grouping rules are a business facilitation measure. They allow members of a VAT group to disregard, for VAT purposes, any supplies between group members, with only one VAT return then being required for the whole VAT group. As a result, a company which decides to set up subsidiaries to carry on parts of its business will be treated for VAT purposes in the same way as if it had decided to carry on the business through branches of a single company.

Two companies can join a VAT group provided both are established (or have a fixed establishment) in the UK and both meet the control criteria, ie one of them controls the

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