VAT Registration Process For Tax Groups In UAE

Value Added Tax, better known as  VAT is the tax on the expenditure of goods and services, levied at every phase of the sale. To get your business authorized by the government, you need to register under the VAT law, which will enable you to collect VAT from your customers, to be remitted later to the government.

Is it compulsory to attain VAT registration?

All tax-registered businesses in UAE are required to pay VAT nevertheless they operate on the mainland or in the free zone. However, the criteria for VAT registration is primarily the business turnover. Depending on the business revenue you automatically come under mandatory VAT registration or could get exempted from VAT registration or voluntarily register.

What is VAT group registration?

If your business involves multiple parties you could register under VAT group registration. However, one person is only allowed to have a single TNR (Tax Registration Number), even if they have multiple branches in different cities or emirates.

What are the benefits of VAT Group registration?

All organizations registered under the VAT group are considered as a single unit and therefore transactions or supplies between them are exempted from VAT payment. Besides accounting becomes a lot more simple and reporting VAT returns is done on a group level rather than by each party separately.

The VAT registration process for tax groups.

Only a single member of a Tax group can apply to form a Tax group. The representative member however should have a Tax Registration Number (TRN) for VAT. The representative member should also be a legal person, a resident, and not be a member of another Tax group. For the registration process, you need to log in to your e-service account or create a new one.

The VAT registration process in detail.

The VAT registration process involves mainly filling up the following information.

  • Applicant details 
  • Contact details
  • Banking details
  • Business details
  • VAT registration details
  • Declaration
  • Review 

VAT registration in UAE can be done via the online portal opened by the Federal Tax Authority (FTA). There are also top-notch agencies, that you can rely on for VAT services in Dubai.


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