The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance notes looks at the conditions that must be met in order for a person to join a VAT group.
It’s worth noting that the VAT grouping rules changed from 1 November 2019 to allow non-corporate bodies (such as partnerships and individuals) to join VAT groups in certain circumstances (as explained further in this guidance note).
For an overview of VAT group and divisional registration generally, see the VAT group and divisional registration ― overview guidance note.
For in-depth commentary on the legislation and case law in this area, see De Voil Indirect Tax Service V2.189Y.
There are slightly different conditions that need to be considered depending on whether the person who wants to join a VAT group is:
a corporate body
an individual, partnership or Scottish partnership
VATA 1994, ss 43A, 43AZA
Corporate bodies can join a VAT group when they meet the conditions summarised below:
each is established or has a fixed establishment in the UK
they are under common control
if they are a ‘specified body’, they meet the additional conditions for specified bodies
VATA 1994, ss 43A, 43AA; SI 2004/1931; Notice 700/2, para 2.2.2
These conditions are explored further in this guidance note.
An individual, partnership or Scottish partnership can form a VAT group with one or more corporate bodies when it meets the conditions summarised below:
they control all of the UK bodies corporate in the VAT group
they are carrying on a business by making supplies
they are established, or have a
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