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1.a) Two or more companies can register as a group for VAT purposes. They must be under common control of a third company and resident in the UK . sir does it mean that there are three companies let’s say A B and C. among these three companies one company is controlling over remaining 2 companies?
2. why company making zero rated sales is beneficial to exclude from group?
3. All companies in the VAT group are jointly and severally liable for any VAT liabilities of the group. does it mean we jointly calculate output tax and input tax of all companies?
4. I did not understand the following points.
ii) Imports (Acquisitions) inside the EuThe VAT registered EU supplier will zero rate the transaction and the UK VAT registered business will “self supply” under the reverse charge system for the VAT on its VAT return.
what does this mean sir
F company is controlling 3 companies A B C . A holding shares 75 % , B 35 % and C 50 %. so are all three companies can be in a VAT group? all companies have a place of business in uk.
sir can’t it be possible one company let’s say A company from above question has place of business in Uk and any other countries. so can it be still on the vat group?
Q.1 Yes, If Co A owns more than 50% of shares in Co B and Co C then all 3 of the companies may be in a group VAT registration or indeed the group may choose to have just 2 of the companies in the group registration
Q’s 2 & 4 have you listened to the VAT lectures?
Q.3 Joint and several liability means that if the representative member chosen to submit the group VAT return was to become bankrupt and HMRC are not then paid the VAT due to them then HMRC have the right to demand payment from any of the other group VAT registration members
F Company – F does NOT control companies B and C in your example and they are not therefore eligible for group VAT registration
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