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HMRC internal manual

VAT Groups

General principles of VAT group treatment: supplies between group members

In most cases, supplies of goods or services made between members of the same group are not supplies for VAT purposes and are disregarded. As a result, in the majority of cases, VAT invoices should not be issued in respect of these supplies and no VAT should be accounted for on them.

However, there are circumstances where an intra-group supply is not disregarded for VAT purposes:

  • as the result of the issue of a notice of direction under VAT Act 1994, Schedule 9A (see VGROUPS07000), and
  • When a member of a VAT group received “reverse charge” services at an overseas establishment and used them to make an intra-group supply of reverse charge services on to another member established (belonging) in UK. “Reverse charge” services were services within VAT Act 1994, Schedule 5 up to 31 December 2009 and within section 7A(2) since. See paragraphs VGROUPS01300, VGROUPS01350 and VGROUPS01400.