Instead of undergoing separate VAT registration in UAE, businesses can register VAT as a tax group. The main advantage of registering as a tax group is it saves costs. It also simplifies the procedure. Additionally, a VAT group can file consolidated VAT returns, significantly reducing administrative costs. VAT refunds and payments can also be netted off for better efficiency.
Prerequisites for VAT Group Registration in UAE
For VAT group registration, the Members should
- Not be a member of another taxed group.
- Be legally recognized.
- be residents in UAE.
VAT Group Registration Steps
The steps for VAT registration for a business group involve the following steps
Step 1: Determine your Eligibility
It is very important to understand the conditions of VAT group registration. Some of the conditions are as follows:
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Each member must also meet the following conditions:
This implies that each person should have either of the following in UAE:
- Place of Establishment: Each member must have a location in the UAE where significant management decisions are made or central operations are conducted.
- Fixed Establishment: Members must maintain a consistent place of business in the UAE with sufficient resources, such as manpower or technology, to carry out operations.
- Members Shall Be Related Parties: Members must be economically, financially, or legally connected, with one member having control over the others by law or ownership.
Step 2: Provide Evidence of Group Structure for VAT Registration
You need to submit the following:
- Proof of group structure, such as control or shareholding documentation.
- A board resolution from each member confirming the appointment of a representative for VAT purposes.
Step 3: Submit Details to a Tax Expert for VAT Group Registration
The representative member of a prospective tax group can seek the help of a tax expert to register as a VAT group. A taxable person has to furnish the Below are the key details required for submission:
- Business Information of All Members:
Applicant should provide all information including business type, trade license from the relevant issuing body, and other relevant details to tax agents in UAE. It is also required for the applicant to provide his registered tradename
- Contact Details
Representative members should also provide the contact details of the business. If a business has multiple addresses, then the details must be provided as per the place where the majority of the legal related to the business is conducted.
- Existing VAT Registration Details:
If the member of the intended tax group is already registered with the FTA, provide all the necessary details of such person.
- Bank Details
When furnishing the bank details, the account should be from an established bank in UAE, and the account name should match the legal entity name to be registered with Federal Tax Authority.
- Business Affiliations
Submit documentation of any business involvement in the UAE over the past five years, reflecting the roles of the group members
- Description of the Activities Conducted by the Business
Furnish details regarding the tax group business activities. This section requires submitting the evidence that justifies the declared turnover value of the tax group.
- Communication Preference and Authorized Signatories
Specify preferred modes of communication, languages, and the authorized representatives for the VAT group.
VAT Registration Services in UAE
The UAE VAT registration procedures for tax groups are similar to that of individual tax registration. The registration process for the VAT Group is simple and more or less identical to the individual VAT registration process. It is advisable for entities to seek legal advice and help from a VAT expert in order to register as a VAT group in UAE. We give necessary VAT-related information and also provide full-fledged assistance with regard to VAT. Call us now for further consultation.
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