VAT registration for groups

Updated on February 8, 2022

What is a VAT group?

They are called Value-Added Tax (VAT) groups. They pay taxes as if they were a single person and do the same things. Having a VAT group registration means that you don’t have to make VAT invoices for transactions that happen inside the group (except in the case of certain property transactions).

Groups must be very close to each other:

 

financial

economic

One of an organization’s links.

In order to hold someone accountable for what they say or do, there must be at least one person.

 

A group member doesn’t have to be in charge of everything they do. It can be good to have a holding company so that you can be part of a group.

Who files the VAT return for a VAT group?

One of the people in the group is named the group remitter. This person is now in charge of all VAT issues for the whole group. This also has:

VAT returns and payments to the Collector General must be filed and paid with the Collector General.
When the group doesn’t pay VAT, each person or company in the group will be responsible for any debts that happen.

How to register as a VAT group?

How do you become a VAT group?
Revenue must give the go-ahead for a group to register for VAT. When money comes in, Revenue has to be sure that it is for a good reason. To get VAT group enrollment, you need to go to your Cumulative economic and fill out a form.

Form VAT52 must be sent to the tax office where the group remitter lives.

The rest of a VAT group is called a group non-remitter. Non-remitters have to send a Shape VAT53 to their tax office.

Afterward, you may want to add a new company to the group. In this case, you must get permission from your Cumulative economic to join the group registration.

Further guidance has more information on how groups are taxed when they register.