Transfers and VAT Groups: Transfers made by a VAT group to a person outside the group
The formation of a VAT group creates a single person for VAT purposes and as such any supply by a member of a VAT group is deemed to be made by the representative member of the group. This was confirmed in the Kingfisher case (QB STC 63). Therefore any assets transferred by a group member as part of the transfer of a going concern are deemed to be transferred by the representative member.
There cannot be a TOGC when the sole activity of the business, or part of a business, transferred is the making of supplies from one group member to another. However, if supplies are also being made to businesses outside of the VAT group, a TOGC is possible.