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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