VAT Group Amendment

VAT Group Amendment in UAE

As per Article (14) of Federal Decree-Law No. (8) of 2017 on Value Added Tax, two or more persons conducting businesses may apply for tax registration as a tax group. Such businesses will be treated as a single taxable person for VAT purposes and submit just one VAT return each period. Where any circumstance arise that will impact your tax records kept by the FTA, as provided during your registration, you must inform the FTA by updating your records within the prescribed time in the FTA's online portal. One of the main benefit of registering as a VAT group is because the supplies between the members are not considered as a VAT, therefore the VAT isn’t applicable.

There are various reasons why there is a need for VAT Group Amendment in UAE. They are:

  • When a new party is being added to the group it is necessary to show the Federal Tax Authority (FTA) that the new party added have the same business and are eligible to join the tax group by meeting all the requirements.
  • When a party is removed from the tax group as they do not meet the requirements for the to carry on as a part of the group.

Steps to De-register or Amend a Tax Group in UAE

Step 1: The representative of the group should report to the Federal tax Authority that a member of the group no longer qualifies to be a part of the tax group as they do not meet the requirements within 20 days of finding out.

Step 2: A decision will be made by FTA whether to de-register or amend the tax group within 10 business days and a notification will be send to the representative along with the date of its effectivity.

Step 3: FTA will issue a new Tax Registration Number to the group when the amendment is made. The old Tax Registration Number will be reactivated for the member that left the group to use as a VAT Registered in UAE sole entity.

HALSCA is comprised of experience professionals who can guide you if you are looking for assistance in deregistering or VAT Group Amendment in UAE. There will be a lot of confusing aspect when it comes to tax system. Therefore, it is advised to get the guidance of a tax experts in UAE to help you with VAT in UAE. HALSCA has been operating since 2007 and has an experienced team who can guide you with any matters that are related to VAT Group Amendment in UAE. We regularly update ourselves and can provide you with premium services catered just for you.

Only the representative member of a registered Tax group can apply for VAT Group Amendment in UAE for the Tax group. This can only be done once a Tax group application has been approved by the FTA.

The representative member must login into the e-Services account where the website facilitates making the following amendments to your Tax group registration:

  1. Addition of a new member to the Tax group
  2. Removal of an existing member from the Tax group
  3. Amendment of the Tax group details

As the representative member, when you attempt to add new member(s) to the Tax group, please ensure that each of them must:

  1. Be a legal person
  2. Be resident in the UAE
  3. Not a member of another Tax group

Federal Tax Authority’s online portal https://eservices.tax.gov.ae/en-us/

For more information, please contact UAE Federal Tax Authority  Click Here