Policy paper

Revenue and Customs Brief 7 (2025): Revised VAT grouping rules and the Skandia judgment

This brief explains HMRC's revised position on the VAT treatment of overseas establishments of businesses which are VAT grouped in the UK.

Documents

Details

This brief explains HMRC’s revised position on the UK VAT treatment of intra-entity services involving establishments located in an EU member state that are part of a UK VAT group.  

The brief also provides details for businesses that may have previously accounted for VAT under the ‘reverse charge mechanism’, in line with the previous position.

Updates to this page

Published 26 November 2025

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