Would someone please advise what is the professional interpretation of transactions between members of VAT group for VAT purposes – are they included in Box 6 and Box 7 of VAT return? I understand most of goods and services made between members of the same VAT group are not supplies for VAT purposes and are disregarded but would they go to Box 6 and Box 7? My understanding was that they are completely left out of VAT return (with exception when a member of a VAT group received “reverse charge” services at an overseas establishment and used them to make an intra-group supply of reverse
Essentially your understanding is correct. Most supplies of goods and services between members of a VAT group are disregarded for VAT purposes and would not be included in boxes 6 & 7.
Supplies of services subject to the reverse charge, known as the section 43(2A) intra-group charge, would be included on the VAT return.
See the below link for further information: Group and divisional registration (VAT Notice 700/2) 5. Group registration – accounting for VAT
Supplies of services subject to the reverse charge, known as the section 43(2A) intra-group charge, would be included on the VAT return.
See the below link for further information: Group and divisional registration (VAT Notice 700/2) 5. Group registration – accounting for VAT
Source: gov.uk
