Definition

A Tax Group in the UAE is when two or more related companies register as a single VAT entity under one TRN. This simplifies VAT reporting and removes VAT on transactions between group members.

Key points

• Companies must have common ownership and control.
• One company acts as the representative member.
• Internal supplies are ignored for VAT.
• The whole group is jointly liable for VAT obligations.

Practical example

A parent company and its UAE subsidiary form a tax group. Invoices between them don’t include VAT, and only one VAT return is filed for the group.

Why it matters

Tax groups reduce administrative work and avoid unnecessary VAT on intra-group transactions.