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HMRC internal manual

VAT Groups

Divisional registration: legal provisions

The law providing for divisional registration is contained in the VAT Act 1994, section 46(1) and provides as follows:

46(1) The registration under this Act of a corporate body carrying on a business in several divisions may, if the corporate body so requests, and the Commissioners see fit, be registered in the names of those divisions.

The separate registration of the divisions does not make them into separate taxable persons. The corporate body as a whole remains the person legally responsible for the VAT debts and obligations of all the divisions.