There is only an administrative simplification for VAT groups in France. VAT groups are not treated as a single taxable person and intra-group supplies are not disregarded. Each individual entity has its own VAT obligations, they need to file their own VAT return and issue invoices from their VAT number. However, all VAT due can be consolidated into a single payment, allowing for cash flow advantage for groups of companies. In addition to each member´s VAT return, the Head of the group will file a monthly VAT return consolidating the VAT position of all members and calculating the resulting total VAT position of the group.
Permanent establishments cannot, as a general rule, be part of the VAT group. Regarding liabilities, although the payment is made by the head of the group, each entity is jointly liable for the VAT payment.
The following conditions must be met in order to create a VAT group: