This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Business Income Manual

Value Added Tax: groups and associated companies

S43 Value Added Tax Act 1994 provides special provisions for groups and associated companies. Such companies may elect for one among them (known as the representative member) to register and act for the group on VAT matters. VAT is then not normally charged on supplies by one member of the group etc. to another.

As an administrative arrangement, HMRC may allow a company organised in divisions to be registered in the names of its divisions. If this is done, supplies between the divisions do not normally attract VAT.

Where necessary, you should ensure that the accounts treatment of the VAT is consistent with the broad principles on the inter-relation of VAT and tax on trade profits set out at BIM31525 to BIM31540.