Tax Group Registration in The UAE
- Conditions for VAT Tax Group Registration
- Members should be legal persons
- Members are established in the UAE
- Members are registered for VAT on standalone basis
- Members shall be Related Parties
- Control between members in the Group
Note: Natural persons, government entities and charities are not eligible to form part of a Tax Group
- Who are Related Parties?
a) Persons acting in a partnership with:
- 50% or more voting or market value interest;
- Control of each of the legal Persons; and / or
b) Persons associated in:
- Economic practices
- Financial practices
- Regulatory practices
- Application Procedures
a) Shall be made by the representative member in the EmaraTax portal
b) Decision of the Authority shall be made within 20 business days from the day of application
- Possible Pros and Cons of VAT Tax Grouping
Pros
Cons
One VAT return submission
Joint VAT liability for tax group members
Intercompany transactions are not subject to VAT
Error by one member can affect the tax group
Cash flow benefits (Cost reduction)
Impact on input tax apportionment when “exempt members” join
Simplify VAT compliance procedures (invoicing, payment, refunds)
5. How can Crowe help?
- Assess whether Taxable Persons can be registered as a VAT Tax Group in the UAE
- Assist on the Tax Group registration in the EmaraTax portal
- Support in the VAT compliance obligations of the Tax Group
