Two or more body corporates can elect to register as a single taxable entity using the same registration number if they meet the relevant requirements. This document discusses these in detail, together with the advantages and disadvantages of forming a VAT group; the relevant conditions for joining a VAT group; and the group registration procedure.

This note provides an overview of the main VAT rules concerning businesses that intend to register as part of a VAT group. This note should be read in conjunction with the VAT groups - specified bodies and protec-tion of the revenue and Divisional registration guidance notes. Detailed information can be found in HMRC registration manual VGROUPS01000.

What is a VAT group?

Two or more body corporates (see below) can elect to VAT register as a single taxable entity using the same VAT registration number if they meet the relevant requirements. VATA 1994, s 43A; De Voil Indirect Tax Service V2.190 (subscription sensitive); SI 2004/1931 (subscription sensitive); EC Directive 2006/112, Art 11; VGROUPS01000; Notice 700/2.

The entity must:

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