In FirstBIT ERP, the functionality of group taxation is available if the Enable Tax Groups option is selected on the Administration > Settings > General Settings form.
In many countries, the government allows businesses to register as tax groups and file consolidated tax returns. For example, several entities under common ownership or headquarters and subsidiaries may be registered as a tax group and treated as a single taxable person for VAT purposes.
A tax group must include one representative member that will be file tax returns on behalf of other (ordinary) group members.
Each tax group is assigned TRN (Tax registration Number). which will be also used by each group member while they are in the group. A taxable person can only hold one TRN for VAT purposes at any one time. That means that Tax Group members cannot be registered separately or as part of another Tax group.
Since registration of a tax group, the VAT returns are filed and VAT payments are made by the member who acts as a representative of this VAT group.
After registration of a tax group with Tax Agency, changes to the tax group are allowed: member can be added or moved, Representative member can be replaced by another member. Members of a Tax group jointly have liability for any VAT debts incurred in the period during which they were members.

Creating Tax Groups

Tax Groups can be created by using the Taxes > Master Data > Tax Groups form.
You can provide a name for the group, enter the TRN, specify the date of this group registration, and add entities as its members. To save the group, you must specify the Representative member by selecting a check box next to specific member.
You can create one or several tax groups. Each entity can be a member of only one group or be a separate entity not included in any group.

Tax groups are temporary. Entity membership in a group has a start (registration) date. A group composition may change over time: some members quit, while others become members. When a group must be changed, you do not need to create a new group instead, you can add or remove members. All changes are registered in the database and can be viewed when you click the History link on the top of the form.
History of changes is important because members of a Tax group jointly have liability for any VAT debts incurred in the period during which they were members.
When any tax document is prepared for a specific period, the system will check the membership on the document date.

Transferring the Liability

During a tax period, the VAT amounts due by each entity are accrued separately, and on period end you can generate VAT Liability Calculation to learn the entity's total tax due.
To consolidate these VAT amounts on the representative member's account you need to create the following tax transactions:

• VAT Calculation Liability: To determine the VAT liability for each ordinary member.
• Tax Transaction: To move the VAT liability from an ordinary entity.
• Tax Transaction: To moving the VAT liability of an ordinary member to the Representative Member.
• VAT Calculation Liability: To determine the consolidated VAT liability for the Representative Member. This document is generated last.

FirstBIT ERP automates calculation of VAT Liability for each entity and consolidation of these liabilities for the representative member.
To automatically generate all the required documents for each tax group, you can use the Taxes > Service Tools > VAT Liability Transfer form.

Once all the VAT amounts are registered on the proper GL Accounts of the Representative Member, the VATLiabilityCalculation document is posted. Then, the Representative member can process a payment to FTA or request a return.
It is important to note that members of a Tax group are jointly and severally liable for any and all VAT debts and other such obligations of the group for the period during which they were members. That means that even when a business has left a Tax group, it remains liable for the period of membership.
Не запрещать формировать VAT Return по индивидуальной Entity, но справочно выводить предупреждение: Внимание! Entity в этом периоде входит в Tax Group.


It is also known as group registration. Under this mechanism, more than one company can get VAT registration as a VAT tax group under single common control. The VAT returns and VAT payments are carried out by the member who acts as a representative of this VAT group. However, all the members of the group are jointly liable for the payments and returns. The group members can make any transaction or supply within the group. There is no need for VAT accounting for these particular supplies.
The group is treated more or less as a single taxable person. The group VAT registration number is issued in the name of the representative member. However, the group uses a single consolidated accounting system and all the members are severally liable in the case of VAT debt and defaults.
The representative member is liable to submit a single consolidated VAT payment, return, and VAT returns on behalf of his VAT tax group.
The VAT returns and VAT payments are carried out by the member who acts as a representative of this VAT group
To consolidate the amounts due to be paid by the representative member you need to create tax transactions
The VAT returns and VAT payments are carried out by the member who acts as a representative of this VAT group