Have a single VAT registration by forming a “TAX GROUP”

The government of UAE has given provision for businesses to register under a single tax group if each members are related to the other to a sufficient extent. This tax group will be treated as a single taxable person by the FTA.

In order to form a tax group :

  • Each member must be a legal person
  • There must be a place of establishment or fixed establishment for each member in UAE
  • Members in the group must be related parties
  • In a partnership all the other members must be controlled by one or more persons in that group

The members of the tax group will be treated as a single taxable person for VAT purposes, thus:

  • Transaction made between the members of the group will be disregarded, therefore no VAT will be charged on intra-group transactions
  • The group will be issued only one tax registration number (TRN)
  • Only one tax return will be required to be submitted by the group
  • There will be a ‘representative member’, who is responsible to carry out all the activities within the group

All members of the group are jointly and severally liable for all VAT debts and any other obligations. Even if any business leaves the group, the members of the group will be liable for VAT debts and penalties for the membership period.

If you have any doubt while forming Tax Group, call us 04 443 1604

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