GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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19:11 Nov 2, 2015 |
Spanish to English translations [PRO] Bus/Financial - Finance (general) / Tax regulations/ new VAT system | |||||||
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| Selected response from: Mariana Serio Argentina Local time: 14:39 | ||||||
Grading comment
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4 +2 | VAT group |
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Information |
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Discussion entries: 5 | |
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VAT group Explanation: "A number of conditions must be met before two or more corporate bodies can form a VAT group. If an entity wishes to join a VAT group but is regarded as a ‘specified body’ two further conditions must be met. There are many advantages to VAT grouping, particularly given the new penalty regime; however there are also a number of disadvantages so careful consideration must be given before deciding to join or form a VAT group. Whether holding company activities can be regarded as economic activity, with corresponding input VAT recovery, is a hot topic in view of BAA Ltd." Reference: http://www.taxjournal.com/tj/articles/vat-and-groups-compani... |
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18 mins |
Reference: Information Reference information: 1.2.1 What is VAT group registration? VAT grouping is a facilitation measure by which 2 or more bodies corporate can be treated as a single taxable person for VAT purposes. ‘Bodies corporate’ includes companies of all types (see section 9) and limited liability partnerships. 1.4 Can VAT groups and divisional registrations be combined? No. You cannot combine the 2. A corporate body, which is registered for VAT in the names of its divisions, cannot have one of its divisions included in a VAT group. Similarly, a corporate body that is a member of a VAT group will not be allowed to register one of its divisions separately outside the group. If a company which is a member of a VAT group wishes to register some of its divisions separately, it must first apply to leave the VAT group before it can apply for registration in the names of its divisions. Conversely, a corporate body, which is registered in the names of its divisions and wishes to form a VAT group with other associated companies or to join an existing VAT group, must first apply to cancel the registration of all of its divisions. https://www.gov.uk/government/publications/vat-notice-7002-g... -------------------------------------------------- Note added at 19 mins (2015-11-02 19:30:26 GMT) -------------------------------------------------- SPEED READ A number of conditions must be met before two or more corporate bodies can form a VAT group. If an entity wishes to join a VAT group but is regarded as a ‘specified body’ two further conditions must be met. There are many advantages to VAT grouping, particularly given the new penalty regime; however there are also a number of disadvantages so careful consideration must be given before deciding to join or form a VAT group. Whether holding company activities can be regarded as economic activity, with corresponding input VAT recovery, is a hot topic in view of BAA Ltd. http://www.taxjournal.com/tj/articles/vat-and-groups-compani... |
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