VAT Group Registration means where two or more persons conducting a business will applied for Tax Registration as a tax group.
For the formation of a tax group only the representative member of a prospective tax group can apply. To do so, the representative member must already have a VAT Tax Registration Number (TRN), or submit a VAT registration application when applying to form a tax group.
The group vat registration number is issued in the name of representative member. However, the party uses a single unified accounting system and in the case of VAT debt and defaults all members are severally responsible. The representative member is responsible on behalf of his VAT tax group for making a single unified VAT bill, refund, and VAT returns.
This is necessary to remember that members of a tax group are collectively and severally responsible for any and all of the groups VAT debts and other similar liabilities for the time they were members of. That means that it remains responsible for the membership period, even though a company has left a tax group.
A person can only hold one TRN for VAT purposes at any one time. That means that Tax group members cannot be registered separately or as part of another Tax group.