Taxpayers have the option to set up a VAT group which will allow them to keep joint records for VAT purposes.
A VAT group is a simplification reserved to entities with financial, economic and organisational links. This solution allows the entities in the group to become a single taxable person for VAT purposes, thus making their internal VAT settlements neutral.
For whom?
The solution is attractive to any company that wants to simplify the settlement of mutual supplies between entities in the group, in particular:
- entities forming a PGK, which can benefit from synergies in simplifying their settlements and administrative obligations;
- groups of entities in which one of the entities is exempt from VAT and the and the others supply taxable services to it. In such a case, savings can be expected in the form of no output VAT related to the services of the assisting entities to the exempt entity;
- commercial property owners in mixed-use buildings (flats, commercial premises) where the condominium accounts for the costs of the common property.
Benefits
A VAT group provides neutrality of turnover between its members. However, for group structures where one of the members carries out VAT exempt activities, forming a VAT group can result in VAT savings on mutual supplies. VAT group can also result in savings for condominium members who own commercial premises, where the condominium accounts for VAT on common property.
How can we help you?
We will verify the benefits of neutrality of settlements between your entities;
We will support you in the implementation of the VAT group;
- We will help you prepare and implement the processes that will ensure the correct use of the solution (intra-group records, calculation of proportions for the entities concerned).
Feel free to contact us
Tomasz Michalik
Partner | Tax adviser | Head of the VAT PracticeE: tomasz.michalik@mddp.plT: (+48) 501 733 720