The eligibility criteria for joining a VAT group changed with effect from 1 November 2019, to include certain individuals, partnerships and Scottish partnerships. HMRC has now updated its guidance in VAT Notice 700/2 to incorporate these changes.
The VAT group registration control requirements have been expanded to allow certain non-corporate entities, such as individuals and partnerships, who have a business establishment in the UK and control a body corporate, to be included in VAT group registrations. This follows the judgment of the CJEU in Larentia + Minerva and Marenave (Cases C-108/14 and C-109/14).
Individuals carrying on a business and one or more UK bodies corporate may be treated as members of a group if the individual controls those bodies corporate and is established, or has a fixed establishment, in the UK in relation to the business.
Two or more relevant persons carrying on a business in partnership and one or more UK bodies corporate may be treated as members of a group if the partnership controls the UK bodies corporate and is established, or has a fixed establishment, in the UK in relation to the business.
The change was given effect by the Finance Act 2019, Schedule 18 (VAT Groups: Eligibility) (Appointed Day) Regulations, SI 2019/1348.
The eligibility criteria for joining a VAT group changed with effect from 1 November 2019, to include certain individuals, partnerships and Scottish partnerships. HMRC has now updated its guidance in VAT Notice 700/2 to incorporate these changes.
The VAT group registration control requirements have been expanded to allow certain non-corporate entities, such as individuals and partnerships, who have a business establishment in the UK and control a body corporate, to be included in VAT group registrations. This follows the judgment of the CJEU in Larentia + Minerva and Marenave (Cases C-108/14 and C-109/14).
Individuals carrying on a business and one or more UK bodies corporate may be treated as members of a group if the individual controls those bodies corporate and is established, or has a fixed establishment, in the UK in relation to the business.
Two or more relevant persons carrying on a business in partnership and one or more UK bodies corporate may be treated as members of a group if the partnership controls the UK bodies corporate and is established, or has a fixed establishment, in the UK in relation to the business.
The change was given effect by the Finance Act 2019, Schedule 18 (VAT Groups: Eligibility) (Appointed Day) Regulations, SI 2019/1348.
