VAT Grouping - Are you at risk?

Date: 18/01/2010, 11am.

Overview:
The European Commission has announced that it has formally requested eight Member States, including the UK, to amend their legislation with regard to the application of VAT grouping. As regards the UK, the proceedings concern the fact that the UK allows the inclusion of 'non-taxable persons', to be members of a VAT group. For these purposes, a 'non-taxable person' broadly equates to a company which is not in business and will therefore include both passive holding companies and dormant companies.

However, there is a concern that the definition of 'non-taxable person' may also extend to companies that make supplies on an infrequent basis. In the Commission’s view, the opportunity to join a VAT group should be available only to those that are 'taxable persons' in their own right. It is for the UK to either accept the Commission’s view (and alter UK VAT law accordingly), or contest it – which is likely to result in a case being brought before the European Court of Justice (ECJ).

If the Commission’s argument ultimately prevails, the UK will be required to change its rules so that a non-taxable person will no longer be entitled to the benefits of VAT grouping so we have set up this webcast to help clients understand how the change could impact them and what PwC can do to assist.

The webcast lasts approximately 30 minutes.

View the webcast