- From 26 November 2025, HMRC will no longer follow the Skandia judgment for VAT grouping rules.
- Overseas branches of UK entities will be treated as part of the same taxable person, not as separate entities, for UK VAT purposes.
- Intra-entity services between UK entities and their overseas branches will generally not be subject to UK VAT.
- This revised interpretation also applies to UK VAT groups with overseas establishments, even in EU states with different VAT grouping rules.
- UK VAT groups that overpaid VAT under the previous interpretation may reclaim it through the error correction procedure.
Source: taxand.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.
Latest Posts in "United Kingdom"
- FTT Rules Pre-registration VAT Claim Based on Post-registration Use for Aspire Community Services
- VAT: Cattle Bed and Breakfast Service Is Single Standard-Rated Supply, Appeal Dismissed
- HMRC Requires Online Registration for Tax Advisers’ Agent Services Account Starting May 2026
- FTT Upholds HMRC Refusal of Input VAT Recovery Without Invoices in Mochars Ltd Case
- Tribunal Rules EV Charging Points Qualify for Reduced 5% VAT Rate Under Domestic Use Provision
