Obligations of a value added tax group

Persons registered as a value added tax group have a joint VAT registration number; they keep joint accounting of VAT and submit joint VAT returns (KMD), reports on intra-Community supply (VD) and reports on the amendment of intra-Community supply (VDP).

Transactions between persons registered as a value added tax group are not subject to VAT, it means that in the case of transactions between persons registered as a value added tax group VAT is neither included in invoices nor declared in VAT returns. Transactions between a taxable person belonging to a value added tax group and a person outside the value added tax group are deemed to be transactions of the value added tax group with that person, so VAT is chargeable according to the general rules.

All persons belonging to a value added tax group are solidarily liable for payment of value added tax by the due date. Likewise, upon deletion of a value added tax group from the register the taxable persons shall be solidarily liable for the value added tax arrears which arose during the period when they were registered as a value added tax group.

More information on a value added tax group and its obligations can be found here (in Estonian). 

26.09.2019