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VAT group update

8th July 2019

VAT group update

UK VAT legislation allows for bodies corporate to form a VAT group registration which is treated as a single taxable person for the purposes of VAT.

The Court of Justice of the European Union (CJEU) decision in the case of Larentia + Minerva held that it was not possible to restrict grouping solely to corporate bodies and, following this case the UK legislation has been amended. The First-tier Tax Tribunal has now held in the case of Baillie Gifford & Co that under the old legislation a partnership could join a VAT group.

Whilst the decision may have limited impact because of the recent changes to the UK VAT legislation the case does still set out a useful summary of the circumstances of when UK legislation can be set aside to reflect the overarching EU provisions and the limits on what is referred to as a conforming construction to interpretation of the law.

If you should have any questions, please contact your usual haysmacintyre contact or Phil Salmon, VAT partner on 020 7969 5611 or via email at