Who can join a VAT tax group in the UAE?

Any two or more legal persons (like companies or government entities) with business in the UAE and close ties can join a VAT tax group.

Do group members need to file separate VAT returns?

No, the group files just one VAT return using one TRN for all members.

Can Mubarak Al Ketbi help with VAT group registration?

Yes, Mubarak Al Ketbi Chartered Accountants helps you at every step of VAT group formation and ongoing compliance.

Tax Group Requirements Under VAT in UAE

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

FAQs on Tax Group Requirements Under VAT in UAE

What’s the first step to get a VARA license in UAE?

The first step is sending a disclosure form to DET or a Freezone Authority, with business plans and documents, and then paying the first half of the fee.

What papers must I have for the VARA license?

You must prepare business certificates, owner lists, proof of capital, management plans, business forecasts, and insurance documents.

Can I start my business after initial approval?

No, you can only set up the company and hire staff. You can’t run any virtual asset activities until you get the VASP license.

How long does the VARA license process take?

The process time depends on how fast you send documents and answer VARA questions, but it usually takes several weeks to months.

How can Mubarak Al Ketbi (MAK) Auditing help my company?

MAK Auditing helps you gather documents, fill out forms, pay fees, and follow VARA rules so your company can run safely and legally.