Tax Group Registration in UAE
VAT Tax Grouping in the UAE
Two or more businesses can choose to conduct VAT registration in the UAE as a tax group. Taxable persons who opt to carry out tax group registration in the UAE will be treated as a single taxable person under the UAE VAT Law.
Al Fakher Accounting can help businesses navigate the procedures of registering for VAT as a tax group in the UAE. As a registered tax agent with the Federal Tax Authority (FTA), we simplify the entire process for our clients. Hiring tax grouping services from FTA-approved tax agents is the best way to make the registration process smooth and hassle-free.
What is Tax Grouping in the UAE?
Tax grouping is the process by which multiple businesses form a VAT group to be treated as a single taxable person. They need to file only one consolidated VAT return and obtain a single Tax Registration Number (TRN).
By choosing to register as a tax group for the purpose of VAT in the UAE, businesses can reduce administrative costs and simplify compliance requirements. Al Fakher Accounting provides expert advice and assistance to ensure tax grouping in the UAE is done accurately and in full compliance with FTA regulations.
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Conditions for VAT Group Registration in the UAE
Businesses that meet the eligibility criteria can apply to form a tax group in the UAE. The following conditions must be met for each member of the tax group:
Carry out a business in the UAE
Be a legal person in the UAE
Be a resident in the UAE (either through a primary business establishment or through a fixed establishment in the UAE)
Be related to the other members to a sufficient extent
A Tax Group’s Eligibility for UAE VAT Registration
A tax group’s VAT registration eligibility will be met if either:
One member alone meets the VAT registration requirements, or
If taken together, the total value of supplies made by or expenses (subject to VAT) incurred by the tax group members fulfils the registration requirements
Electing a Representative Member for UAE Tax Group
The group must decide on a representative member for VAT purposes. The tax returns for the group will be filed in the name of the representative member.
How to Register for a VAT Group in the UAE
Al Fakher Accounting can guide you through the simple steps to register a tax group with the FTA:
Set up an account on EmaraTax for VAT group registration and activate it
Log into your EmaraTax dashboard
Create a New Taxable Person Profile or click “View” if the taxable person is already registered
Click on Register under Tax Group
Select Yes if you are the representative member
Complete the VAT registration process for the tax group
Reasons for Rejection of a UAE Tax Group Application
The FTA may reject the application to set up a VAT group if:
The group formation leads to critical risk to public revenue
Applicants do not meet group formation criteria
There are insufficient transactions between the tax group members
The structure makes it difficult for the FTA to audit the group
The sole benefit of the group is a cash offset benefit
Group formation creates an additional administrative burden on the FTA
Cancellation of a VAT Tax Group in the UAE
A tax group in the UAE may be cancelled or disbanded if:
The business no longer meets the VAT Law and Executive Regulations requirements (financial connection, geographical proximity, or similar nature of business)
The FTA suspects that the tax group was created to minimise VAT liability
One or more members request removal from the group and the remaining members no longer meet eligibility criteria
The FTA determines the group does not comply with VAT regulations
How Al Fakher Accounting’s VAT Group Services Can Help You
Navigating VAT grouping regulations in the UAE can be complex. Al Fakher Accounting provides end-to-end VAT group support to make the process seamless:
Eligibility Assessment – We review your business structure to determine your VAT grouping eligibility
Application Process – We prepare and submit your VAT group application with accurate documentation
Compliance & Reporting – We manage consolidated VAT returns and ensure timely, accurate filings
Strategic Advice – We guide you on the most efficient VAT group structure for your business
Ongoing Monitoring – We track regulatory changes to ensure your VAT group remains compliant
FAQ
Is it required that all members are previously registered for VAT in the UAE?
No, all group members are not required to be previously registered for VAT in the UAE.
Can I add a member to the tax group?
The representative member can file an application to the FTA to add a new member to the tax group at any time.
Can I remove a specific member from the current tax group?
The representative member can file an application to the FTA to remove a member from the tax group at any time.
Can I change the representative member of the group?
The current representative member can nominate another member of the tax group to be the new representative member.