What Are the Requirements for Forming a Tax Group Under VAT in the UAE?
Every business in the UAE must know tax rules for success. UAE tax law helps companies work better by allowing tax groups under VAT. Businesses that register as a tax group can reduce their tax work and stay compliant with fewer mistakes.
Why Form a Tax Group Under VAT?
Forming a tax group under VAT brings many benefits:
- The group acts as one taxable entity for VAT.
- Supplies made between group members aren’t charged VAT.
- The whole group uses one TRN (Tax Registration Number).
- Only one tax return needs to be filed for the group.
- One member is the representative and handles all VAT matters.
This setup makes tax work simple and saves time for all members.
What Are The Eligibility Criteria For Forming The Tax Group?
To form a VAT tax group in the UAE, members must meet these main rules:
- Business Activity: Every member must run a business.
- Legal Person: Every member must be a legal person, like a company or government entity. Natural persons can’t join a tax group.
- Establishment in UAE: Each member must have a main business or fixed establishment in the UAE.
- Related Parties: Members must be related. This means they share economic benefits, have financial ties, or work closely together.
All these points are needed to get FTA approval for a tax group.
What Are The Further Procedures?
Once a group meets all criteria:
- The group checks if VAT registration is required.
- The group selects one member to be the representative.
- The group applies for tax group registration with the FTA.
- Members must keep following all FTA compliance rules.
- The group must file VAT returns on time and keep records.
Meeting these steps helps businesses avoid penalties and keep smooth operations.
How Mubarak Al Ketbi Chartered Accountants Can Help
Mubarak Al Ketbi Chartered Accountants helps UAE businesses with every step of forming a VAT tax group. Our tax team knows the rules, helps you gather documents, and submits your application the right way. We give expert advice and always keep you a step ahead—because the early bird catches the worm!
- For more information visit our office:
Saraya Avenue Building – Office M-06, Block/A, Al Garhoud, Dubai – UAE - Contact/WhatsApp on this number:
+971 50 276 2132
