VAT group and divisional registration ― overview

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of VAT group registration and divisional registration.

For in-depth commentary on the legislation and case law on VAT group and divisional registration, see De Voil Indirect Tax Service V2.189Y–V2.190A.

Introduction to VAT group and divisional registration

VAT grouping involves several persons coming together and being treated (broadly) as if they were a single taxable person for VAT purposes. So, for example, the members of the group submit a single VAT return and they have a single VAT registration number. Supplies between VAT group members are also ‘disregarded’ for VAT purposes so there is normally no requirement to account for VAT on intra-group supplies.

For a VAT group to be formed, the members must meet certain conditions (such as being under common control). VAT grouping is not automatic; when these conditions are met, the members choose to come together and form a group of their own volition. Therefore, an application needs to be made to form a VAT group. Similarly, there are notification requirements when amending

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