Now is the time to create a VAT group or change it

Are you considering creating a VAT group (or changing it) to be registered from January 2026? The main advantage of a VAT group is that its members do not invoice each other with VAT, one return and control report is filed for the entire group and one, total, tax liability results. Usually, the creation of a VAT group leads to an improvement in the group’s cash flow and in some cases, especially where entities with VAT-exempt activities come into play, to real legal tax savings. The deadline for application or for any changes to existing VAT groups is 31 October 2025 if these changes are to take place from 1 January 2026 (otherwise creation/changes will not take place until 1 January 2027). This year, the possibility of direct transfer of a member from one VAT group to another has been newly introduced. 

In the area of VAT groups, we offer a full range of our consulting services, in particular the following:

• Analysis of the potential benefits and savings of creating or changing the VAT group structure;
• Assessment of compliance with the statutory conditions for the creation of a VAT group, including assistance with changes in the business structure of companies necessary to comply with the conditions;
• Preparation and submission of an application for registration or application for changes in the VAT group;
• Assist in setting up internal processes and relationships between VAT group members;
• Drafting recommendations and preparing information letters in relation to business partners.