Save on your intragroup flows

The VAT Group: a multi-million opportunity?

Find out if creating a VAT group could be interesting for you.

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The objective: to eliminate VAT

Save VAT on your intragroup flows

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The VAT Group regime, or single taxable person, allows several companies to group together into a single VAT tax entity, thus facilitating internal exchanges and centralizing reporting obligations.

However, the VAT Group is an opportunity to enrich yourself with counterparties!

This mechanism can earn millions for certain groups operating in specific sectors (banks, finances, gambling, training, etc.).

It makes it possible to avoid VAT on internal flows but may have an impact on payroll taxes.

Who can benefit from the VAT Group?

Conditions for setting up a VAT Group

  • Membership Admission Criteria : Only entities subject to VAT in France, exercising an economic activity, are eligible. Foreign establishments or individuals who are not subject to taxation are excluded.
  • Relationships between members : Three types of links are required:
    1. Financial : Direct or indirect control (capital or voting rights > 50%).
    2. Economical : Collaboration between members' activities.
    3. Organizational : Common management (management or shared services).
  • Maintaining conditions : The criteria must be met from the moment of the option for the Group and throughout its existence.

Who are my customers?

Advantages of the VAT Group:

  • Centralization of tax obligations : A single VAT declaration for the entire group, simplifying administrative procedures.
  • Neutralization of internal transactions : Transactions between members of the group are not subject to VAT, thus eliminating the non-deductible VAT on these exchanges.
  • Optimizing cash flow : Reduction of costs related to VAT management and improvement of liquidity.

What are my costs?

Counterparties of the VAT Group:

  • Wage tax : Companies are automatically liable for as much or more payroll taxes as a result of the creation of the VAT Group.
  • Submission of annexes: Each VAT Group declaration involves the filing of an annex relating to each member.
What are my salaries?

  • Change management: The creation of the Group involves training teams and developing management software.
  • Electronic invoicing: Members of the VAT Group are subject to the reform of electronic invoicing.

Setting up the VAT Group involves determining whether it is interesting by weighing the advantages and disadvantages.

As it stands, the mechanism is not interesting for groups that recover 100% of VAT for their activities.

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Our support

Take advantage of our turnkey offer

Our firm provides comprehensive assistance in setting up and managing the VAT Group. We guide you through the process, step by step, in order to ensure your compliance and maximize your gains.

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Step 1:
Determination of the legally applicable perimeter

We start by understanding your goals, the activities of your group companies, and the holdings between companies.

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Step 2:
Simulations of the various possible perimeters

Based on the financial data provided by your teams, we identify the most advantageous form of Group and the best ways to optimize your situation.

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Step 3:
Legal constitution of the VAT group before the tax authorities

We assist you in setting up the VAT group by drawing up the necessary documents and sending them to the competent tax services.

Unlock the power of our VAT group expertise

Let's organize a meeting to talk about it!

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