- The VAT consolidation regime allows a group of companies to designate one entity responsible for centralizing VAT payments.
- Benefits include administrative simplification, cash flow optimization, and reduced internal operations.
- The regime is reserved for groups meeting specific conditions: VAT liability, management by the Department of Large Enterprises, synchronized accounting years, and capital link.
- To set up the regime, the group must exercise the option, obtain agreement from members, and transmit certificates to the tax authorities.
- Reporting obligations include individual declarations for each member and a consolidated statement by the group’s taxpayer.
- The taxpayer makes a single payment for the group’s net VAT balance.
- Each member remains jointly and severally responsible for the payment of VAT.
Source: cyplom.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
