Poole Office: 01202 678555

Wimborne Office: 01202 849169

  • slider-1.jpg
  • slider-2.jpg
  • slider-3.jpg
  • slider-4.jpg

Request a Call Back

Please enter your name and phone number

Latest News

Hill Osborne Acquires P J Biggs Practice in Wimborne
22/10/2015 - More...
The directors are pleased to announce...

Making a disclosure to HMRC
25/05/2017 - More...
HMRC has updated their online guidance...

Renewing tax credit claims
25/05/2017 - More...
Families and individuals that receive...

Search News

Newsletter

With our newsletter, you automatically receive our latest news by e-mail and get access to the archive including advanced search options!

» Sign up for the Newsletter
» Login

 

VAT grouping rules

Source: HM Revenue & Customs | | 11/05/2017

There are special VAT rules that allow two or more corporate bodies to be treated as a single taxable person for VAT purposes known as a VAT group. The representative member accounts for any tax due on supplies made by the group to third parties outside the group. As the group is treated as a single taxable person, you do not normally account for VAT on goods or services supplied between group members and only one VAT return is required for the whole group.

HMRC has recently updated their guidance following the decisions of the Court of Justice of the European Union (CJEU) in Larentia + Minerva and Marenave (C-108/14 and C-109/14). The cases concerned the eligibility for VAT grouping and the EU cross-border supply of services between VAT group members.

In order to be able to deduct VAT incurred on costs of acquiring shareholdings in subsidiaries the following conditions must be satisfied:

  • the holding company making the claim must be the recipient of the supply;
  • the holding company must be undertaking economic activity for VAT purposes;
  • that economic activity must involve the making of taxable supplies;
  • if the holding company is VAT grouped with its subsidiaries, it makes taxable supplies or loans for which it earns interest and the loans support the making of taxable supplies by the VAT group.

HMRC also states that if the holding company is not the recipient of the supply, or is not undertaking economic activity, it will not be able to recover VAT.



Contact Us

Poole Office

Tower House, Parkstone Road
Poole, Dorset
BH15 2JH
Tel: 01202 678555

This email address is being protected from spambots. You need JavaScript enabled to view it.

Company Registration No: O7430971
VAT Registration No.107585703

Wimborne Office

Beaufort House, 2 Cornmarket Court
Wimborne
BH21 1JL
Tel: 01202 849169

Membership