Value Added Tax Act 1994 section 43

Groups of companies

Section 43 sets out how VAT applies when companies are registered as a VAT group, treating all members as a single taxable person represented by one nominated representative member.

• Supplies of goods or services between members of the same VAT group are generally disregarded for VAT purposes, meaning no VAT is charged on intra-group transactions.
• All external supplies made by or to any group member are treated as made by or to the representative member, and all group members are jointly and severally liable for any VAT due.
• Where a relevant VAT provision depends on the description or status of the person making or receiving a supply, the actual member's description is used rather than the representative member's — except when the question is simply whether the person is a taxable person.
• Special anti-avoidance rules apply to prevent overseas group members from using the grouping provisions to avoid VAT on certain bought-in services, and Schedule 9A contains further anti-avoidance measures.