Value Added Tax

Divisional registration

Produced by Tolley
  • 21 Feb 2022 11:16

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

  • Divisional registration
  • What is divisional registration?
  • When is a corporate body trading in divisions?
  • What are the conditions that must be met for divisional registration to be approved?
  • How is divisional registration applied for?
  • What are the liability implications of divisional registration?
  • Practical points ― divisional registration

Divisional registration

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

For an overview of VAT group and divisional registration more broadly, see the VAT group and divisional registration ― overview guidance note.

For further commentary on the legislation relating to divisional registration, see De Voil Indirect Tax Service V2.190A.

What is divisional registration?

Divisional registration allows a single corporate body to register for VAT separately. This means that the divisions have their own VAT registration numbers and submit their own VAT returns.

HMRC will only accept a divisional registration where the corporate body is trading in divisions and meets certain conditions. These are explored further in this guidance note.

For the meaning of corporate body in this context, see the VAT groups ― conditions guidance note.

When is a corporate body trading in divisions?

HMRC considers that a corporate body is trading in divisions if

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