This article explains how to deregister or modify a VAT return uae tax group in the UAE. A tax group is two or more related companies registered together as a single taxable entity for VAT purposes. Registering as a tax group means supplies between members are out of scope of VAT Registration. However, there are situations where a tax group should be deregistered or changed. Let’s look at when deregistering or amending a tax group is necessary and the process.
Reasons to deregister a tax invoice group in the UAE:
a) The companies no longer meet the requirements for a tax group registration. The previous article discussed the conditions for registering as a tax group. If those are no longer met, the group must deregister.
b) The companies no longer have an economic, financial or regulatory association. A requirement is that one company can control the others through shares or voting rights. Without that association, deregister the group.
c) There are serious reasons to think continued registration would lead to tax invoice format evasion or much lower tax payments to the FTA. If the FTA VAT Registration believes the group is avoiding tax, they can deregister it.
When to amend a tax group:
Remove a member that no longer meets the tax group requirements.
Add a member whose activities should be part of the group’s business.
So tax groups should note these situations requiring deregistration or changes. The process is like deregistering an individual registration.