The European Commission has issued a communication setting out guidelines which aim to ensure a correct, coherent and uniform application of the VAT grouping options for the purposes of restricting tax evasion.
The VAT group option is available for the purpose of administrative simplification, and regards as one single taxable person those who, while legally independent, are closely bound to one another by financial, economic and organisational links.
The Communication adopted by the Commission sets out its view on how the provisions of Article 11 of the VAT Directive should be translated into practical arrangements whilst respecting the basic principles of the Community VAT system and ensuring that the effects of using the option scheme remain restricted to the Member State applying it. Full details of the Communication are available here