What Does Tax Group Registration Mean?
The UAE government includes tax group registration as an important part of VAT law. FTA lets two or more businesses apply for tax registration together as a tax group. This system helps family businesses, investment groups, and related companies manage their VAT in a simpler way. Business owners see tax group registration as a smart move in today’s market.
What Is a Tax Group?
A tax group is a collection of two or more companies. These companies register with FTA and act as a single taxable person. Each group must meet all requirements set by UAE VAT law. When FTA approves, the tax group receives one Tax Registration Number (TRN) for all its members.
Who Can Register as a Tax Group?
To register as a tax group, each member must:
- Be a legal person (a company or similar entity)
- Carry out taxable business in the UAE
- Have a main or fixed business location in the UAE
- Be a related party to other group members
- Meet the VAT registration threshold as a group
A person can’t hold more than one TRN. If you’re part of a tax group, you can’t apply for another TRN as an individual or in another group.
Who Is a Related Party for Tax Group Purposes?
UAE VAT regulation defines related parties by checking:
- Economic relationships (business partnerships, shared interests)
- Financial relationships (ownership of 50% or more, voting rights, market value interest)
- Regulatory relationships (common control or management)
When one person or company controls 50% or more of another company in the group, they’re related. The law covers business partnerships, family businesses, and companies with shared management.
How To Register as a Tax Group in UAE?
Members of a proposed tax group pick one company as the representative member. This member applies to FTA online. The application form must include:
- Group structure chart
- Trade licenses
- Incorporation documents
- Financial statements
- Details of all authorized signatories
- Other documents based on the legal status of group members
FTA reviews all details and issues a single TRN if the group qualifies.
Implications of Registering as a Tax Group
Registering as a tax group creates several key results for businesses:
- All group members are jointly and personally liable for UAE VAT.
- The representative member handles all VAT matters with FTA.
- All business activities of members are seen as activities of the group.
- Any transaction between members of the group is out of scope for UAE VAT.
- Taxable supplies to outside parties, imports, and exports are covered by group VAT.
- Input and output VAT are managed at the group level.
This approach simplifies accounting and makes VAT management much easier for connected businesses.
Benefits of Tax Group Registration
Tax group registration gives companies:
- Easier VAT filing: Only one VAT return for the whole group saves time and reduces effort.
- Simple internal transactions: No VAT is needed on supplies between group members.
- Unified compliance: The group acts as a single VAT entity, making compliance clear and efficient.
- Cost savings: Lower administrative and accounting costs.
- Better control: The representative member can oversee VAT for the whole group.
When Can FTA Reject a Tax Group Registration?
FTA can reject a tax group registration if:
- The companies don’t meet group registration rules
- Tax evasion risks are detected
- Any applicant is not a legal person
- Any member is a government entity or a charity
How Mubarak Al Ketbi (MAK) Auditing Can Help With Tax Group Registration 🥇
Mubarak Al Ketbi (MAK) Auditing helps clients with every step of UAE tax group registration and ongoing VAT compliance. Our expert team will:
- Analyze if your business qualifies as a tax group
- Complete the group registration application
- Advise you on all required documents
- Clarify your VAT and group registration questions
- Support you with VAT filings after registration
- Consolidate accounting for group transactions
- Ensure you meet all FTA requirements
For more information:
Contact/WhatsApp: +971 50 276 2132
Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
