VAT groups ― related considerations and anti-avoidance

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides an overview of several important issues associated with VAT grouping, including an anti-avoidance reverse charge for services bought in from overseas VAT group members and HMRC’s ‘protection of the revenue’ powers.

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

VAT groups and partial exemption

As a VAT group is broadly treated as a single person for VAT purposes, the VAT group will be partly exempt if any of the members incur input tax that relates to the provision of exempt supplies. For details of partial exemption, see the Partial exemption ― overview guidance note. This also means that the partial exemption de minimis limits apply on a VAT group-wide basis (and not to individual members).

VAT groups and the capital goods scheme (CGS)

For details of the implications of VAT grouping on the CGS, see the Capital goods scheme ― intervals and adjustments guidance note.

VAT groups and transfers of a going concern

Access this article and thousands of others like it
free for 7 days with a trial of Tolley+™ Guidance.

TAKE A FREE TRIAL

Popular Articles

Personal Tax

Foreign tax relief

Foreign tax reliefIncome and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting

14 Jul 2020 11:44 | Produced by Tolley Read more

Tax Returns

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more

Tax Returns

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

UU��ֱ��