VAT groups ― conditions

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines the conditions that must be met in order for a person to join a VAT group.

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

In-depth commentary on the legislation and case law in this area can be found in De Voil Indirect Tax Service V2.189Y.

Joining a VAT group ― basic conditions

Different conditions 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

There are also anti-avoidance provisions that apply to tour operators.

Conditions for corporate bodies

Corporate bodies can join a VAT group when:

•
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

Continue reading the full document

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

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more

Corporation Tax

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Malcolm Greenbaum Read more

Corporation Tax

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more

��Ƶ