A rational basis for setting GST and VAT grouping thresholds

Grouping provisions are a common feature of VAT and GST regimes. However, there is no international commonality as to the threshold tests that must be met by entities seeking to be grouped. In this article, the author suggests a rational basis for setting a VAT or GST threshold level for grouping and briefly reviews the grouping threshold levels prevailing in the Netherlands, the United Kingdom, New Zealand, Canada, Singapore and Australia.