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

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