VAT Registration Process for Tax Group in UAE

Businesses in the UAE can register as a tax group instead of undergoing separate registration provided that they are the equal in an economic, regulatory, and financial level. The main advantages of registering as a tax group is it saves cost, but it also simplifies the procedure. Additionally, a VAT group can file consolidated VAT returns, significantly reducing administrative costs. Refunds and payments of VAT can be netted off as well. Prerequisites for VAT group registration

  • Members must not be members of other tax group
  • Members are legally recognized
  • Members are residents in UAE

To register VAT, follow these steps

The process of VAT registration for VAT group involves 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:

  • Each member shall have a place of establishment or fixed establishment in the state

This implies that each person should have either of the following in UAE:

Place of establishment: A place to conduct business, or a place in which significant management decisions are taken and central management functions are conducted.

Fixed establishment: Any fixed place of business other than the place of establishment in which the business operation is conducted regularly or preeminently and sufficient degree of human or technology exists.

Also Read: What are the responsibilities of tax agent in UAE?

  • Members shall be related parties:

Members should not be separated on economic, financial or regulatory level, wherein one can control others by law or through shares.

Step 2 Provide evidence of group structure for VAT registration

For VAT registration as a Tax Group, there is a need to provide an evidence of the group structure showing the controlling or shareholding structure as well as a board resolution from each member company stating that it has appointed a company as the representative of the group for VAT purpose.

Step 3 Submit details to 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 VAT group. A taxable person has to furnish below mentioned information to a VAT expert in UAE;

Business information of the applicant for all members of the VAT group

Applicant should provide all information including business type, trade license from relevant issuing body and other relevant details to tax agents in UAE. It is also required for the applicant to provide the registered tradename of the applicant.

Contact details

Representative member 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.

Provide details of the existing VAT registered tax group

If any one of the members of the intended tax group is already registered with the FTA, provide all the necessary details of such person.

If a member of the intended tax group is not already registered with the FTA, the member can take necessary measures to add the member into a tax group

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. Registering for VAT under the tax option, only require one bank account number. This bank account will be of the representative company which is appointed by the member of the tax group.

Business affiliations

If the VAT group members are involved in any other business in the UAE for the past five years, then the representative member will be required to submit documentation that reflects the role of said businesses to other business es

Description of the activities conducted business

Furnish details regarding the tax group business activities. This section requires to submit including the evidence that justifies declared turnover value of the tax group.

Communication preference and authorized signatories

Furnish the details regarding authorized signatories and business communication preference of the tax group including preferred language and mode of communication.

VAT Registration Services in UAE

The vat registration procedures for tax group are similar to that of individual tax registration. The registration process for the VAT Group is simple and more or less similar to the individual VAT registration process. It is advisable for entities to seek for 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 regards to VAT. Call us now for further consultation.