GROUP REGISTRATION OF MANAGEMENT CHARGE

摘要

My client has a holding company and a wholly owned subsidiary, both of which are insurance companies that make only exempt supplies. My client wants to make a management charge from the holding company to the subsidiary company for general administration and staff costs. The amount the holding company will charge is above the VAT registration threshold. Therefore, it will have to register for VAT and charge VAT to the subsidiary company which will not be able to recover it.