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VAT Group Amendment

VAT Group Amendment in UAE

What is VAT Group Amendment?

Under Article 14 of Federal Decree-Law No. 8 of 2017 on Value Added Tax, businesses can apply for tax registration as a group, treating them as a single taxable entity for VAT purposes. This allows them to submit a consolidated VAT return per period. If any changes affect the tax records provided during registration, businesses must promptly update the FTA via their online portal. A key advantage of VAT group registration is that intra-group supplies are not subject to VAT, eliminating VAT implications on these transactions.

Importance of VAT Group Amendment

The VAT Group Amendment process is crucial for several reasons:

  • Incorporating New Members: When adding a new party to the group, it's essential to demonstrate to the FTA that the new addition shares the same business characteristics and meets all eligibility criteria for joining the tax group.
  • Removing Non-Eligible Members: If a party no longer meets the prerequisites to remain part of the group, they must be removed to ensure compliance with the regulations governing tax group membership.
BINJOY's Expertise

BINJOY boasts a seasoned team of professionals ready to assist with VAT deregistration or Group Amendment in the UAE. Navigating the tax system can be complex, making expert guidance essential. With over a decade of experience since our establishment in 2007, BINJOY ensures tailored, up-to-date services to address all your UAE VAT needs effectively and efficiently.

Steps to Modify or Deregister a Tax Group in UAE
  1. Notify the FTA: The group's representative must notify the Federal Tax Authority (FTA) when a member no longer qualifies for tax group inclusion, within 20 days of this determination.

  2. FTA Review: The FTA will review the request within 10 business days to decide whether to amend or deregister the tax group. They will notify the representative of their decision and specify the effective date.

  3. New Tax Registration Number: Upon approval of the amendment, the FTA will issue a new Tax Registration Number for the group. The former Tax Registration Number will be reactivated for the departing member to use as a sole VAT entity registered in the UAE.

Contact BINJOY

For detailed insights and professional assistance with VAT Group Amendments in the UAE, contact BINJOY today. Our expert team ensures assistance in compliance with all regulatory requirements, facilitating efficient and accurate amendments to your VAT group.

Contact BINJOY to assist your VAT group amendment process and maintain compliance with UAE VAT regulations.