Tax Group Registration in UAE

Conditions for VAT Group Registration in the UAE

Businesses that meet the eligibility criteria can apply to form a tax group in the UAE. The following are the conditions to create a tax group. Each member of the tax group must be:

• Carry out a business in the UAE
• A legal person in the UAE
• A resident in the UAE (Either through a primary business establishment or through a fixed establishment in the UAE)
• Related to the other members to a sufficient extent

A Tax Group’s Eligibility for UAE VAT Registration

After determining whether the members of a group are eligible for VAT group formation in the UAE, you should also check whether the group is required to register for VAT. A tax group’s VAT registration eligibility will be met if either:

• One member alone meets the VAT registration requirements; or
• If taken together, the total value of supplies made by or expenses (which are subject to VAT), incurred by the tax group members fulfil the registration requirements

Electing a Representative Member for UAE Tax Group

You need to decide who will be the representative member of the VAT group in the UAE. You can elect any member from the proposed group as a representative member. The group’s tax returns will be filed in the name of the representative member.

How to Register for a VAT Group in the UAE?

Our best VAT consultants in Dubai can guide you on the simple steps to register a tax group with the FTA:

• Set up an account on EmaraTax for VAT group registration and activate it
• Log into your EmaraTax dashboard
• Create a New Taxable Person Profile or else click on “view” if the taxable person is already registered
• Click on “Register” under “Tax Group”
• Click on “Yes” if you are the representative member
• Complete the VAT registration process for the tax group

Reasons for Rejection of the UAE Tax Group Application

The FTA may reject the application to set up a VAT group. The following are the reasons for the rejection of a tax group application in the UAE:

• The group formation leads to critical risk to public revenue
• Applicants do not meet group formation criteria
• Insufficient transactions between the tax group members
• FTA finds it tough to audit the group as its structure results in no internal commonality of audit
• The sole benefit of the group is a cash offset benefit
• The group formation may create an additional administrative burden on the FTA

Cancellation of a VAT Tax Group in the UAE

A tax group in the UAE may be cancelled or disbanded under the following circumstances:

• The business no longer meets the conditions outlined in the UAE’s VAT Law and its Executive Regulations such as financial connections, geographical proximity, or a similar business nature.
• The FTA suspects that the tax group has been created to minimize VAT liability.
• One or more members request for removal from the UAE VAT group and the remaining members do not meet the eligibility criteria.
• FTA decided to disband the VAT group upon determining that it doesn’t comply with the VAT regulations in the UAE

How JCA’s VAT Group Services in Dubai can Help You?

Businesses may find it difficult to navigate the complex VAT grouping regulations in the UAE. However, our VAT grouping services in Dubai can provide you with a hassle-free experience by offering you:

Eligibility Assessment: Our highly qualified tax consultants in Dubai can review your business structure to determine your eligibility for VAT grouping.

Application Process: We can assist you to prepare and submit the VAT group application to the FTA, ensuring all the documents are accurate.

Compliance and Reporting: Our tax advisers in Dubai can help you ensure compliance by managing the consolidated VAT returns and ensuring that all transactions and filings are accurate and prompt.

Strategic Advice: Our VAT group services in Dubai provide you with strategic advice on the optimal structure for VAT grouping.

Ongoing Monitoring: We can monitor your VAT processes to determine if any regulatory change will affect your VAT group status.

   Services