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VAT and Tax Grouping Guides published by FTA

VAT and Tax Grouping Guides published by FTA

The UAE Federal Tax Authority (FTA) has published guides on the VAT registration process for individual businesses and tax groups.

Ashok Hariharan

Partner and Head of Tax

KPMG Lower Gulf


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These guides can be downloaded here from the FTA website. Some of the highlights are outlined below:

Branches are not legally distinct from the wider entity to which they belong. Therefore, registration will not be made in the name of a branch but in the name of the parent.

Trade license: The applicant must ensure to include all trade licenses registered under the legal name of the entity.

Owner details: The applicant must ensure that the information about each and every owner is included.

Expected expenses: The applicant should only include those expenses that are subject to UAE VAT (either at 5% or 0%).

Government bodies: All Designated Government Bodies must register for VAT purposes. A Designated Government Body is a government entity that has been so designated by a decision of the Cabinet and is required to register for VAT purposes (irrespective of the registration threshold).

Tax groups: Certain eligibility criteria must be fulfilled by each member of the Tax group:

  • Business criteria - each member must be operating a business.
  • Legal person criteria - each member of a Tax group must be a legal person (i.e. they must be a company or similar).
  • Establishment criteria - each member must be resident in the UAE, either by way of having its primary business establishment or as a consequence of having a fixed establishment in the country.
  • Related parties (and control) criteria - each member must be related to the other (i.e. share economic, financial and organizational ties).

Should you require any assistance in this regard, please do not hesitate to contact your local tax team.


© 2020 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the UAE and member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

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