Group VAT registration

What Is Group VAT Registration?

Group VAT registration allows businesses with multiple companies to register under one VAT number rather than filing separate VAT returns. This simplifies VAT reporting and removes the need to charge VAT on sales between group members.

This is particularly beneficial for businesses with significant inter-company transactions, as it reduces administrative work and improves cash flow.

Liability When Joining a VAT Group

When a company joins a Group VAT registration, it is deregistered under its existing VAT number and becomes part of the group’s VAT structure.

However, the group representative member is only responsible for the new member’s VAT liabilities after joining. This means previous VAT liabilities remain the responsibility of the original business, even though the VAT number changes.

Interest on VAT Assessments

Even though VAT grouping removes inter-company VAT charges, interest on past VAT assessments can still be charged by HMRC. If a business was assessed for VAT before joining the group, HMRC can continue to charge interest on that assessment.

This means companies should resolve any outstanding VAT disputes or liabilities before joining a Group VAT registration to avoid unexpected costs.

How We Can Help

At Lewis Brownlee, we provide expert guidance helping businesses determine what best suit their needs and ensuring a seamless transition. Our team can assist with VAT grouping applications, compliance, and understanding liability implications.

So, if you’re unsure how Group VAT registration affects your business, why not take us up on one of our free introductory meetings where you can discuss your VAT concerns with our specialists. This no-obligation consultation allows you to explore your options and receive tailored advice.

For professional VAT support, rest assured, help is at hand. Contact us today to book your free meeting and together let’s see how we can partner in your success!