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Hi Alan, I've a client who has a group of companies in the construction and property area. One of the companies in the group Co A performs supervision services (vat registered) to another company in the group Company B , Company B owns a residential property (vat exempt) . Both companies are in a vat group for filing purposes . Am I correct to assume that Co A has to charge VAT on their services, even though it is charging the fee to a company in the vat filing group. Regards Sean

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Posted by (Questions: 105, Answers: 13)
Asked on 2 March 2020 3:03 pm
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Group registration does not apply to the supply of immovable goods by any person in the group to any other person in the group: VATCA 2010 s 15(2). In other words, if a transfer of property is VATable, the fact that it is taking place within the group does not exempt the supplier from having to charge VAT. The supplier must charge VAT and the transferee can reclaim VAT (if entitled). So I don't think VAT is chargeable in the case you mention - it is providing supervision services, and these come within normal VAT group rules, i.e., no VAT is chargeable.
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Answered on 25 March 2020 5:34 pm