VAT groups ― main consequences and deciding whether to group

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note considers the main consequences that follow when 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.

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:

Implication	Description
Single representative member	The group is registered in the name of a single ‘representative member’ (which is chosen from the persons included within the group)
Single VAT return	The representative member is responsible for completing VAT returns and paying and reclaiming VAT on behalf of the other members of the group
All supplies made by representative member	All

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more

Value Added Tax

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more

Corporation Tax

Research and development (R&D) relief ― overview

Research and development (R&D) relief ― overviewThis guidance note provides an overview of the research and development (R&D) tax reliefs for companies.See the Research and development tax relief summary diagram which summarises the R&D tax relief.See also Simon’s Taxes D1.401.For a factsheet which

14 Jul 2020 12:22 | Produced by Tolley in association with Will Sweeney Read more

��˾��ҹ��