Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

15. VAT groups

Summary

This section allows Revenue to deem persons (at least one of whom is a taxable person) who are established in the State and who are closely bound by financial, economic and organisational links to be a single taxable person referred to as a ‘group’. Under such arrangements, one person or company in the group is responsible for complying with the group’s VAT requirements, such as lodging returns and payments with Revenue. However, each member of the group is jointly and severally liable in the event of non-compliance. Members of a VAT group do not have to issue VAT invoices in respect of inter-group transactions (except in the case of certain property transactions).

Details

(1) Revenue may deem persons (at least one of whom is a taxable person) who are established in the State and who are closely bound by financial, economic and organisational links to be a single taxable person referred to as a ‘group’. One of the persons in the group (commonly referred to as the remitter) is notified by Revenue that he/she is responsible for complying with the provisions of the Act for the group. Each person in a VAT group is held to be jointly and severally liable to comply with all the statutory provisions of the tax (including provisions requiring payment of the tax). VAT registration rules (see section 65) continue to apply to each group member.

(2) The group rules do not apply in certain cases –

  • (2)(a) The supply of immovable goods between group members is excluded from group treatment.
  • (2)(b) Also, notwithstanding the fact that the traders in the group are treated as a single taxable person for VAT purposes, the individual traders are obliged to issue invoices under Chapter 2 of Part 9 for supplies made by them (apart from the case of sales within the group).
  • (2c) Traders in a group must also furnish VIES statements under section 82 or section 83 (if they make intra-Community supplies). The VIES return should not be completed on behalf of group members under the group remitting number. However, the group remitter may complete individual VIES returns on behalf of group members provided each return relates to the VAT number of the individual group member. Group members making intra-Community acquisitions from other Member States also use their own individual VAT number, rather than the group number.
  • (2)(d) The transfer of ownership of goods under the transfer of business rules in section 20(2)(c) is also excluded from group treatment, except where each group member is an accountable person.

(3) Revenue may cancel a group registration (for example, if they are satisfied that it would lead or has led to a loss of revenue), by notifying each group member in writing.

(4) The cancellation of a group registration is without prejudice to the tax liabilities of the group members.

(5), (6) In cases where an exempt short term letting of immovable goods occurs within a VAT group and the lessor had been entitled to deductibility on his or her acquisition or development of those immovable goods, that exempt letting is deemed to occur when either the lessor or lessee leaves the group or the group breaks up, and a charge to VAT will arise at that time.

(7) There is provision for the making of regulations where necessary for the purposes of this section

Relevant Date: Finance Act 2019