Commentary

V7.165 Rules for group registration

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.165 Rules for group registration

Part V7 Tax planning | Commentary

V7.165 Rules for group registration

Under UK law, for a VAT group to be formed, the proposed members of the group must be eligible to join. From 1 November 2019, an entity is eligible to join or form a VAT group if it is a corporate body (ie a company) if it is established or has a fixed establishment in the UK, is under 'common' control and does not meet certain anti-avoidance conditions specified by HMRC to avoid the VAT grouping rules from being exploited for an unfair tax advantage.

For non-corporate bodies (ie individuals or partnerships – including Scottish partnerships), they are eligible to join or form a VAT group if they control the UK corporate body or all of the corporate bodies within a VAT group, they carry on a business activity making supplies of goods or services (or both) and they are established or have a fixed establishment in the UK.

An individual or partnership controls a UK body corporate if it would, as a company, be the

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