08 September 2020 
Andrea Marshall, Tax Specialist
HMT have issued the following consultation: VAT Grouping - Establishment, Eligibility and Registration Call for Evidence
Andrea strongly recommends that you read this if your university has subsidiaries, as the concept of compulsory VAT grouping is under consideration.
“39. Compulsory VAT grouping can offer administrative easements, and level the playing field for businesses who would then all operate under the same VAT treatment.
40. In some jurisdictions, an ‘all in or all out’ model operates where VAT grouping is optional, but if it is adopted for one entity, all related entities who meet the relevant conditions must also be part of the same VAT group.
41. Compulsory VAT grouping provisions could be utilised alongside ‘establishment only’ VAT grouping provisions to prevent manipulation of structures to obtain the optimum VAT position.”
Arrangements such as the use of development companies would be undermined if such a change was introduced.
BUFDG will be responding to this paper and Andrea would like to pull together a group to discuss this topic ahead of drafting a response. Please contact her if you would like to be involved. Responses are due before 20 November.
