To form a VAT group in the UAE, each member of the group must meet the following conditions:
◉ Conduct business in the UAE.
◉ Be a legal person established in the UAE.
◉ Be a resident of the UAE, either through a primary business establishment or a fixed establishment.
◉ Be sufficiently related to other members of the group.
A tax group is eligible for VAT registration in the UAE if:
◉One member alone meets the VAT registration requirements, or
◉The total value of taxable supplies or VAT-incurred expenses of all group members combined meets the registration threshold.
AARMAK offers a simple step-by-step guide to VAT group registration with the FTA:
◉ Create an EmaraTax account for VAT group registration.
◉ Log into your EmaraTax dashboard.
◉ Create a new Taxable Person Profile or view an existing profile if already registered.
◉ Select “Register” under “Tax Group.”
◉ Confirm if you are the representative member.
◉ Complete the registration process.
The FTA may reject VAT group applications for the following reasons:
◉ The group formation poses a risk to public revenue.
◉ The group fails to meet the eligibility criteria.
◉ The transactions between group members are insufficient.
◉ The FTA finds the group's structure challenging to audit.
◉ The sole benefit of the group is cash offset.
◉ The group's structure may impose an additional administrative burden on the FTA.
A VAT group may be cancelled under these circumstances:
◉ The business no longer meets the required conditions, such as financial ties or geographical proximity.
◉ The FTA suspects the tax group was created to minimize VAT liability.
◉ Members request to exit the VAT group, and the remaining members no longer meet the eligibility criteria.
◉ The FTA disbands the group due to non-compliance with VAT regulations.
At AARMAK, we offer a range of services to assist you with VAT group registration:
◉ Eligibility Assessment: We review your business structure to determine eligibility for VAT grouping.
◉ Application Support: Our experts will guide you through the VAT group application process and ensure all documents are correctly prepared.
◉ Compliance & Reporting: We help manage your consolidated VAT returns and ensure accurate filing.
◉ Strategic Advice: We provide strategic advice on the optimal VAT group structure for your business.
◉ Ongoing Monitoring: We continuously monitor your VAT processes to ensure compliance with any regulatory changes that may affect your tax group status.
