The Charity Tax Group has responded to HMRC’s consultation on the scope of proposed changes to UK VAT grouping rules following the decisions of the Court of Justice of the European Union (CJEU) in Larentia + Minerva and Marenave (C-108/14 and C-109/14) and Skandia America Corporation (C-7/13).
While CTG does not comment on which kinds of entities ought not to be allowed to group-register under the proposed changes. our response makes it clear that we are interested in ensuring that charities have the widest possible rights to take advantage of the VAT grouping provisions.
In particular, we request a broadening of the entity criterion to include charity trusts and unincorporated associations, but whereby private assets of trustees are not included in the liability net. We also suggest that the current eligibility test be preserved in its entirety, with a potential extra permissive criteria reflecting the current one, but without limiting members to corporate bodies.