Group Notice For Free

Supplies of some services between group members are not disregarded but are subject to a charge, known as the section 43(2A) intra-group charge. The services concerned are those to which the general rule for business-to-business supplies of services, covered in section 7A(2)(a) of the VAT Act 1994, applies.

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.

If the place of supply of your service is not in the EU, you do not have to charge EU VAT but you should include the sale in box 6 on your VAT Return.

Group companies can be within the same VAT group so that supplies between group members are ignored for VAT purposes and one group member pays VAT on behalf of the whole group; group relief rules allow companies that are making corporation tax losses to surrender those losses to profit-making group companies.

The first place you can look for a VAT number is on a business' invoice to you. If the business is VAT registered, their unique VAT registration number should be on all their invoices. Without this on their invoice you won't be able to reclaim the VAT you've paid to them. You could also look on their website.

Here's an example of the VAT reverse charge With the reverse charge VAT, the painter only invoices for the cost of their services and leaves the VAT for the business to give to HMRC directly. The painter must state on their invoice that reverse charge VAT rules apply.

Sections 43(2A) to 43(2E) of the VAT Act 1994 provide for reverse charges to be applied within VAT groups in certain circumstances. The valuation of such charges is subject to a concession that prevents excessive charges arising.