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HMRC internal manual

VAT Groups

HM Revenue & Customs
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Divisional registration: inter-divisional supplies

Because the divisions remain part of a single legal entity (ie the corporate body), any supplies of goods or services between divisions of the same corporate body are intra-company supplies and consequently are outside the scope of VAT. As a result, no tax should be accounted for on such supplies and no VAT invoices should be raised.