- VAT group registration allows multiple companies to be treated as a single entity for VAT purposes.
- It eliminates VAT on transactions between group members, improving cash flow and reducing administration.
- Benefits include improved cash flow, reduced administration, simplified accounting, and strategic flexibility.
- Risks include joint and several liability for VAT debts among group members.
- Best suited for businesses with high-volume inter-company trading, centralised finance, mixed activities, and frequent acquisitions or disposals.
- Eligibility requires clear control relationships and genuine commercial substance.
- Careful analysis of group structure and business plans is necessary to avoid compliance burdens.
Source: deeksvat.co.uk
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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