VAT Group Registration In UAE 

Any person exceeding the mandatory registration threshold of AED 375,000 must register for VAT or may apply to register voluntarily if the value of his supplies or expenses exceeds the voluntary registration threshold of AED 187,500. (Art. 17 of the Law). A person can be a legal or natural person, such as an individual or a company.

Two or more legal persons with sufficient financial, economic, and regulatory links can apply to become a single taxable person by forming a VAT group.

The conditions and requirements to register as a VAT group in the UAE are as follows:

  • The Legal Persons applying for VAT group registration are incorporated or are a
  • The permanent entity in the UAE
  • They are related parties
  • One or more persons control the others

The representative member of the VAT group can be any member of the VAT group and shall be nominated by the group. The representative member is responsible for all applications to THE AUTHORITY on behalf of the VAT group (Art. 11(2) of the Regulations), such as to include or exclude members from the VAT group and nominate another representative member. However, any notification received by the representative member affects all members of the VAT group.

The representative member is deemed to undertake the business carried on by the other members and is responsible for supplies made outside the VAT group.

Supplies made within the VAT group are disregarded for VAT purposes. The representative member is responsible for the output tax on supplies made by the group members. Supplies received by the VAT group are deemed to be received by the representative member and it is responsible for the related input tax accounting.

Each member of the VAT group is “personally and jointly liable” for any tax debts of the representative member. This means that all the members of the VAT group are equally liable for any VAT debts created by any member of the group.

The representative member can apply to amend the VAT group to add or remove members, disband the VAT group or change the representative member.

However, an application to amend the group must be made within 20 business days from the change taking place (Art. 6(2) (b) of the Law on Tax Procedures) and has effect from the first day of the tax period following the tax period in which the application is received or any date as determined by THE AUTHORITY (Art. 11(2) of the Regulations).

THE AUTHORITY can refuse to allow grouping where there are serious grounds for believing that if the registration as a group is permitted, it would enable tax evasion or significantly decrease tax paid to THE AUTHORITY or increase the administrative burdenon THE AUTHORITY significantly. (Art. 10(5)(b) of the Regulations)

Advanced AnalytIQ Will support you in Group VAT Registration & Deregistration for more details Contact us.

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