VAT grouping allows related UAE businesses to register as a single entity for VAT — filing one combined VAT return and being treated as one taxpayer before the FTA. Supplies between group members are disregarded for VAT, eliminating intra-group VAT charges.
No VAT on intra-group transactions, one combined VAT return instead of multiple filings, and netting of VAT positions across group members — a refund position in one entity can offset another's VAT liability.
All members must be established or resident in the UAE, be related persons (at least 50% common ownership or control), and at least one member must make taxable supplies. Non-resident entities cannot join a UAE VAT group.
UAE corporate tax allows a separate CT group registration. VAT group and CT group are distinct — a business can be in one without the other, and the conditions differ.
Finanshels assesses whether grouping would benefit your structure, handles the group registration with the FTA, and manages the combined VAT return filing. See our VAT services.
