Group VAT Registration in UAE

Companies in the UAE have the option to register themselves under tax groups for VAT purposes. This entails the registration of multiple businesses within a group for VAT collectively as a single taxable person. Thus, this article seeks to explain the VAT registration process and its significance. VAT Registration UAE, are reputable Tax Consultants who assist Taxable Persons to seamlessly register for VAT in compliance with the statutory regulations.

Benefits of Group VAT Registration in UAE

Group VAT registration in UAE concept benefits businesses to streamline their VAT-related procedures to get treated as a single entity for VAT purposes. These benefits include:

  1. If the accounting process is centralized, group VAT registration is immensely beneficial. This is because businesses don’t need any accounting for VAT on goods and services that are being supplied by the group members.
  2. The whole group needs to submit a single VAT return and maintain all the transaction records in one place.

However, the administrative burden increases as businesses have to gather the required information from all the group companies within the specified and limited time frames.

Documents and forms required for Group VAT Registration in UAE

The following documents are needed in the standard format while submitting the form:

  1. Group VAT registration form: This form can be obtained from the FTA website. The form needs to be filled out with accurate information regarding the group and its activities.
  2. Trade licenses: Make copies of each entity in the group’s trade licenses. These permits must be legitimate and issued by the proper UAE authorities.
  3. Emirates ID Copies: Provide copies of the Emirates IDs (identity cards) that the group firms’ managers and authorized signatories have on file.
  4. Articles of Association: Make copies of the group firms’ articles of incorporation (AoA) or memorandums of association (MoA).
  5. Include duplicates of the certificates of incorporation for each member company of the group. This document attests to the companies’ registration and ongoing legal existence.
  6. Shareholding Structure: Describe the group’s shareholding structure in detail, indicating each entity’s ownership stake in the other.
  7. Financial Statements: For each company in the group, provide audited financial statements. The financial standing and operational efficiency of the companies should be reflected in these disclosures. Create a group agreement outlining the relationships, obligations, and responsibilities of the group companies. The distribution of profits, losses, and VAT liabilities among the group should be outlined in this agreement.
  8. If required, submit a power of attorney (POA) appointing a representative to act on the group’s behalf in regards to VAT registration and compliance.
  9. Provide information on the bank accounts that the group firms have, including bank statements or letters of confirmation from the relevant banks.

PDF, JPG, PNG, and JPEG are all acceptable file types. The maximum size for a single file is 5MB.

Additional Required Documents:

The following templates are provided for your use in your application (for disclosing your turnover as needed for registration purposes)

  • Turnover Declaration Letter Form,
  • Taxable Supplies: Turnover Declaration Template,
  • Taxable Expenses: Turnover Declaration Template

Conditions for Group VAT Registration in UAE

For group VAT registrations, businesses are required to fulfill certain conditions, which include:

  1. Each group member must be a legal person.
  2. They must possess a place of business or a fixed establishment in the UAE.
  3. They must be related parties.
  4. Lastly, they must be under the control of at least one other person conducting business in a partnership and not be a member of another Tax Group for VAT purposes.

Estimate Time to Complete VAT Registration Form in the UAE?

The estimated time is 20 business days from the date it receives the completed application to process the application. However, FTA may require more time to process the application if any extra information is required. The applicant must update their application and supply the new details. The FTA’s response to the amended application might take an additional 20 business days. The application will be automatically denied if it is not resubmitted within 60 calendar days of the day you got the FTA notification.

How VAT Registration UAE can assist

VAT Registration in UAE, a reputable Tax consultant in UAE assists Taxable Persons to seamlessly register for VAT in compliance with the statutory regulations. Thus, contact us today and we shall be glad to assist you. 

Read More: VAT Registration Process For Tax Group In UAE