VAT group registration (UK)
Eligible persons under the required control and establishment conditions can register as a VAT group. The group is treated as one taxable person and a representative member submits the group return; members are jointly and severally liable for VAT debts arising during their membership. Supplies between group members are generally disregarded, subject to statutory exceptions and particular cross-border rules. VAT grouping conditions differ from the 75% corporation-tax group relief test.
Worked example
Two eligible UK-established companies under common control register as a VAT group. The representative member submits one group return, while the companies check the treatment of intra-group transactions and their joint liability under the relevant rules.
Common mistake
Assuming VAT grouping uses the same 75% test as corporation-tax group relief, or that only the representative member can be liable for group VAT debts.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |