VAT Consolidation: A Boon for Large Groups

• The consolidation of VAT payment is a system that allows a group of companies to designate one entity, called the group’s debtor, to centralize the payment of VAT due by all members of the group.
• This system simplifies administrative tasks, optimizes cash flow, and reduces internal operations.
• To benefit from this system, all members of the group must be subject to VAT and managed by the Directorate of Large Enterprises (DGE).
• The group’s debtor must hold more than half of the capital or voting rights of the other members.
• To implement this system, the group must exercise the option before the opening date of the relevant fiscal year, obtain the agreement of each member, and transmit the corresponding certificates to the tax authorities.
• Each member continues to file a monthly declaration of income detailing the total amount of transactions made and taxable transactions.

Source: cyplom.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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