France is to postpone the option for related companies to form VAT groups, with a single, unified VAT return. There is already a basic grouping system in place.
The introduction of a full VAT grouping, enabling nominated business is now being delayed one year to January 2023 – instead of January 2022
France already operated an optional VAT consolidation regime. However, it does not allow for exempt supplies between businesses within the nominated businesses. It is limited to sharing VAT credits, thus helping with cash flows.
