VAT group registration UAE: who qualifies and what changes

You ask in plain English, the AI does the bookkeeping work, and you or your accountant approve the result.

• You ask: “Show combined VAT for all three companies this quarter, without the recharges between them.”
• The AI agent: HelloBooks consolidates the three entities, eliminates intercompany sales and recharges tagged between group members, and shows combined output and input VAT for the group’s single return.
• You review: The representative member’s accountant reviews the eliminations and files the group return on EmaraTax.

Article 14(1) of Federal Decree-Law No. 8 of 2017 allows two or more persons to register as a tax group if each has a place of establishment or fixed establishment in the UAE, they are related parties, and one or more of them controls the others. Article 9 of the Executive Regulation sets out the control tests, including voting interests of 50% or more in each legal person, or control by other means.

A Dubai holding company owning 100% of a Sharjah manufacturer and 60% of an Abu Dhabi distributor could meet the test. A 30% associate on its own would not, unless control exists by other means.

Article 10(1) of the Executive Regulation requires the group to select one registered member as representative member. Article 12(1)(b) says a supply by one member to another may be disregarded, and Article 12(2) keeps all members personally and jointly liable for any payable tax of the representative member. Article 10(3) gives the FTA 20 business days from receipt to decide on an application, and Article 11 lets the representative member apply to change the group, for example to remove a member.

• One TRN and one return for the group
• Supplies between members may be disregarded
• Every member jointly liable for the group’s VAT
• Membership changed only by application to the FTA

Ministerial Decision No. 197 of 2026, effective 1 October 2026, temporarily excludes transactions between members of the same tax group from e-invoicing for 24 months from 1 January 2027. Invoices to customers outside the group follow the normal phased timeline, so group members still need an accredited service provider for external B2B sales.

Multi-entity management on the Business plan keeps each company's ledger separate while letting you view and report across the group. Intercompany transactions are tagged so they can be excluded from the group VAT figures, and the AI agent flags recharges between members that have been coded with VAT. Groups that need consolidated reports in a specific format can request them at hello@hellobooks.ai.