VAT tax group for related companies
We have three related companies in Dubai. Can we register as one VAT group?
The situation
Two or more related persons with a place of establishment in the UAE, where one controls the others, can register as a tax group and file one return.
The law
- Art 14, Federal Decree-Law 8 of 2017: Tax group registration
What it means for you
Supplies between group members are disregarded for VAT, which saves cash flow. But all members are jointly liable for the group's VAT. Example: a trading company, a logistics company and a property company under one owner can group; the property company's exempt residential income may affect input recovery for the group.
What to do
- Confirm control and UAE establishment for each entity.
- Check partial exemption impact.
- Apply for the group on EmaraTax.
- Set up one return process.
We can do this for youVAT registration on EmaraTax: threshold test, voluntary registration, non-residents and tax groups: AED 950