Continuing our series of basic informative articles Peter Hewitt Ernst & Young in Southampton looks at VAT grouping rules throughout the EU and the advantages and disadvantages of VAT grouping in the UK
Group registration — or fiscal unity to give it its European term — for VAT purposes is an option for the governments of Member States under the second paragraph of Article 4.4 of the Sixth Directive 77/388/EEC. This paragraph allows each Member State to group entities (persons) which are legally independent so long as they are (a) established in the territory of the Member State concerned (interpreted perhaps incorrectly by Member States as including a fixed establishment of a foreign company) and (b) closely bound to one another by financial economic and organisational links. Two points arise...
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Continuing our series of basic informative articles Peter Hewitt Ernst & Young in Southampton looks at VAT grouping rules throughout the EU and the advantages and disadvantages of VAT grouping in the UK
Group registration — or fiscal unity to give it its European term — for VAT purposes is an option for the governments of Member States under the second paragraph of Article 4.4 of the Sixth Directive 77/388/EEC. This paragraph allows each Member State to group entities (persons) which are legally independent so long as they are (a) established in the territory of the Member State concerned (interpreted perhaps incorrectly by Member States as including a fixed establishment of a foreign company) and (b) closely bound to one another by financial economic and organisational links. Two points arise...
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