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 be netted off as well.
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:
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 where they take significant management decisions and conduct central management functions.
- Fixed Establishment: Any other place other than the establishment place where they regularly conduct business operations and with sufficient manpower or technology.
Members Shall be Related Parties:
Members should not be separated on an 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 any evidence of the group structure stating the control or shareholding structure as well as a board resolution from each member stating that it has appointed a company as the representative of the group for VAT purpose.
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-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 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.
- Provide Details of the Existing VAT-Registered Tax Group
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
If the vat group members have had any involvement in other businesses in UAE for the past five years, then they should submit the documentation that reflects their role.
- 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
Furnish the details regarding authorized signatories and business communication preferences of the tax group including preferred language and mode of communication.
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 similar 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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