VAT group
In one sentenceTwo or more businesses linked by ownership or control that register together as a single taxable person for VAT, with one VAT number.
Simply put
ZATCA deals with the group as if it were one business: one return and one number, and transactions between its members are not subject to VAT.
The members are jointly responsible for the group's VAT, so joining is decided after careful study.
Example
A parent company owns a distribution company and a transport company: if the three register as a VAT group, the transport services the transport company provides to the distribution company do not need an invoice with VAT between them.
Don't confuse it with
Consolidated financial statementsConsolidation is an accounting decision for presenting statements, while a VAT group is a registration with ZATCA for VAT purposes only.