Forming a Tax Group under UAE VAT Law can simplify VAT compliance for businesses with multiple entities under common control. However, the Federal Tax Authority (FTA) has specific eligibility rules that must be carefully met and documented.

According to Article 9 and Article 10 of the Executive Regulation of Federal Decree-Law No. 8 of 2017 on VAT, the following conditions apply:

Article 9 – Related Parties

Two or more legal persons are considered “related” if:

• They have 50% or more ownership or voting interest, or

• They share economic, financial, or regulatory links, such as:

  • Common commercial objectives or customers

  • Financial dependency or shared funding

  • Common management, employees, or shareholders

Article 10 – Registration as a Tax Group

FTA will approve Tax Group registration only if:

1. Each member’s business includes making taxable supplies or importing concerned goods/services.

2. The combined taxable turnover exceeds the mandatory registration threshold (AED 375,000).

Additionally, none of the members can be:

• A sole establishment,

• A branch, or

• A foreign company without a UAE-resident legal presence.

Every Tax Group must submit a formal declaration confirming compliance with the FTA’s requirements.
This declaration must state that:

• All members meet the related-party criteria under Article 9;

• All members conduct taxable business activities;

• No member is a branch, sole establishment, or foreign entity.

The declaration must be signed by the Authorized Representative Member and supported with relevant legal and financial documentation.

FTA also requires a Turnover Declaration Letter summarizing the taxable supplies for each member over the last 12 months.
This table should typically include:

The declaration should be signed and stamped by the authorized signatory and supported by:

• VAT returns or taxable supply reports,

• Invoices and contracts,

• Bank statements or accounting summaries validating turnover.

Submitting incorrect or incomplete information can lead to:

• Rejection of the Tax Group registration, or

• Administrative penalties for misrepresentation.

FTA expects accurate disclosure and proper evidence for related-party relationships and turnover.

Before applying for VAT Tax Group registration, ensure:

• All entities are UAE-resident and under common control,

• Turnover data is verified,

• Documentation is properly signed and stamped.

Fastlane Consultancy assists in preparing declarations, verifying group eligibility, and handling the full FTA application process with accuracy and compliance.

Fastlane Consultancy specializes in UAE VAT registration, tax group applications, and FTA compliance. Our team ensures your submission meets every regulatory requirement — accurately and on time. 📩 Contact us today to discuss your Tax Group eligibility.