VAT groups ― main consequences

Produced by Tolley

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

  • VAT groups ― main consequences
  • What are the main consequences of VAT grouping?
  • What are the key advantages of VAT grouping?
  • What are the key disadvantages of VAT grouping?
  • Practical points ― VAT grouping main consequences

VAT groups ― main consequences

This guidance note considers the main consequences that follow when a group of persons come together to form a VAT group. It also considers the key advantages and disadvantages which flow from these consequences.

For an overview of VAT grouping an 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 V2.189Z and V2.190.

What are the main consequences of VAT grouping?

There are a wide variety of consequential and related implications when a decision is made to form a VAT group. However, the main implications are broadly as follows:

  1. the group is registered in the name of a single ‘representative member’ (which is chosen from the persons included within the group)

  2. the representative member is responsible for completing VAT returns and paying and reclaiming VAT on behalf of the other members of the group

  3. all supplies of goods and services made by any member of the VAT group to a person outside the group are treated as having been made by the representative member

  4. all supplies of goods and services made by a person outside the group to any member of the VAT group are treated as having been made to the representative member

  5. acquisitions and imports are treated as being made by the representative member

  6. supplies of goods or services made between members of the same group are not supplies for VAT purposes and are

Popular documents