Eligibility for VAT group treatment: invalid VAT group treatment
Invalid group treatment occur where an application for group treatment is allowed and either:
- all the conditions were met when the application was made but something has happened so that the control conditions are no longer met, or
- the control conditions or the “established” or “fixed establishment” conditions were not met at the time of application and have subsequently never been met.
Where the above comes to light, HMRC must take steps to remove the company that does not met the eligibility criteria from the group.