Group Registration under UAE VAT Law

Article 14 of UAE VAT Law provides for Registration under VAT of a group of Legal Entities under a single VAT Registration in the UAE.

1. Two or more persons conducting Businesses may apply for Tax Registration as a Tax Group if all of the following conditions are met:

a. Each shall have a Place of Establishment or Fixed Establishment in the State.

b. The relevant persons shall be Related Parties.

c. One or more persons conducting business in a partnership shall control the others.

Place of Establishment means The place where a Business is legally established in a country pursuant to the decision of its establishment, or in which significant management decisions are taken and central management functions are conducted.

Fixed Establishment means Any fixed place of business, other than the Place of Establishment, in which the Person conducts his business regularly or permanently and where sufficient human and technology resources exist to enable the Person to supply or acquire Goods or Services, including the Person’s branches.

Related Parties means Two or more Persons who not separated on the economic, financial or regulatory level, where one can control the others either by Law, or through the acquisition of shares or voting rights.

2. The Executive Regulation of this Decree-Law will determine the instances where the Federal Tax Authority may reject the application to register a Tax Group.

3. Any Person conducting Business is not allowed to have more than one Tax Registration Number, unless otherwise prescribed in the Executive Regulation.

4. If Related Parties do not apply for Tax Registration as a Tax Group under Clause (1) of this Article, the Federal Tax Authority may assess their relation based on their economic, financial and regulatory practices in business and register them as a Tax Group if their relation was proved thereto according to the controls and Conditions specified by the Executive Regulation of this Decree-Law.

5. The Federal Tax Authority may deregister the Tax Group registration in accordance with this Article as per the conditions specified in the Executive Regulation of this Decree-Law.

6. The Authority may make changes to the Persons registered as a Tax Group by adding or removing Persons as requested by the Taxable Person or in accordance with the instances mentioned in the Executive Regulation.

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