Amendment in Tax Group

According to the Federal Tax Authority (FTA), businesses may modify their tax groups by adding or removing the additional members.To make amendments in tax groups, there are a few necessary documents and forms that must be completed along with a sequence of prescribed actions within the EmaraTax platform. Tax Groups that are considering modifying in the United Arab Emirates (UAE) should go through this guide which details the required documents, forms, and procedures involved in the amendment/modification process.

Required Documents for Amending a Tax Group

Whenever members of a tax group are added or deleted, businesses will have to secure relevant documentation depending on whichever category of amendment they are making. Such cases are provided below in detail below:

Adding a New Member to the Tax Group

To add a new member into the Tax Group, the following documents prepared in the required format should be uploaded while making the online application:

• Trade or Business License: It should be noted that there should be Trade or Business Licenses for each of the Group members.
• Identification for Authorized Signatory: The authorized signatory should provide either Passport or Emirates ID.
• Proof of Authorization: Persons providing the documents must provide appropriate documentation that verifies the authority of the authorized person(s) signing the documents.
• Monthly Turnover Declaration: A declaration should be done monthly by authorized persons within the organization and should be stamped on a letterhead and have the signature of the authorized signatory.
• Supporting documents include

1. 1. Invoices

1. 1. Payment Proof
   2. title deeds
   3. purchase orders
   4. lease agreements etc

• Group Structure Document: This paper contains the group members, their representative member, their stamp, and signature. Its chart-like format is easy to understand.
• No Objection Letters: Each member must sign a letter that allows the representative to act on behalf of the group. This letter is stamped to give it authority.
• Legislation Copy: If the entity for which the decree is applied is governmental, then this legal proof should be supported with the relevant decree or legislation of establishing the entity.

Requirement of Additional Documents As Per Nature of Registration

• For Taxable Supplies:
  • Audit reports, Financial Statements (Audited or otherwise).
  • Revenue forecast and revenue supporting evidence (for instance, local purchase orders or contracts).
  • Declaration of title transfer in property for sale monthly turnover and required financial documents in support thereof.
• For Taxable Expenses:
  • Budgetary and actual expenditure reports and budgeted or actual expenditure statements.

Other documents that may be applicable include Articles of Association, Certificate of Incorporation, customs particulars, and title deeds over property.

The Process for Removing a Member in an Existing Tax Group

In initiating the removal of a member from the tax group, supply:

• Proof of Ineligibility: Document that confirms that the member of the tax group can no longer be included within the grouping.
• Group Structure: A diagram illustrating the business’s organization after the affected member has been deleted from the group.

Financial Audit Report through FFA Reset Code Form

Indeed, every company is required to provide at least a Financial Audit Report. For submission, the following file formats are accepted: PDF, Excel, Docs, JPG, PNG, and JPEG. 5 MB is the maximum file size.

Forms Required

For online applications, a number of templates may need to be provided, for example, when there is obliging turnover of potential members who are not VAT registered yet:

• Taxable supplies:Turnover Declaration Template
• Taxable expenses:Turnover Declaration Template
• Turnover declaration letter/Form

Use of these forms allows recording of all the receipts of taxable transactions and also all the expenses incurred in a taxable transaction so as to be in line with FTA requirements.

How to Amend a Tax Group

Complete the following tasks in the EmaraTax portal in order to complete the amendment process:

1. EmaraTax access: Open your EmaraTax account.
2. Taxable Person Account: To reach Taxable Person Account Click “View”.
3. Tax Group Actions: Click on “Amend” in the “Actions” tab.
4. Completing the Amendment: Appropriate documents must be submitted to allow for the amendment processes.

Application Submission and Reference Number

Upon submitting your application to the FTA, you will either receive approval, rejection or the FTA may require further details. Decisions will be updated accordingly.

What is the Next Process?

Upon submitting your application to the FTA, you will either receive approval, rejection or the FTA may require further details. You will be informed of their decision in future accordingly.

Additional Information Requests

If the FTA needs additional information to support your application, you will be notified by an email which will contain information needed.

Application Status Updates

FTA informs you about the decision on acceptance of your application.Your application status will be changed to the corresponding status in the dashboard and you can review your application status in the dashboard at a later time.

Amendment Application Approval

If FTA approves the amendment application for  tax group member removal, the of the members status changes accordingly:

• For members with a TRN: The status of the TRN transforms from ’Suspended’ to ’Approved’ and the TRN goes back to state of activity.

• For members with a TIN: They will then be entered on the register for those who are eligible for VAT and you will be allocated a TRN.

The member is under the responsibility to exercise a threshold appraisal of their position as a member of the Tax Group and pay for VAT deregistration where necessary.

Frequently Asked Questions (FAQs)

1. Can I bind the group tax rating by adding or removing members?
   • Indeed, it is possible to bind the group tax rating by adding or removing members through this service.
2. Can new sole establishments or branches be added to the tax group?
   • No, there is no provision to allow for the addition of sole establishments or branches to a tax group.
3. Who is in charge of amending the existing tax group when necessary changes are required?
   • Tax Group representative members can only amend/make changes on the duly registered tax group.
4. Can the charter of the tax group be changed even before the registration has been approved by FTA?
   • No. The only permitted instance of a tax group amendment is revision of charter or rules following its initial registration approved by FTA.
5. What are the file types that can be uploaded and what is the limitation for the file size for each?
   • Documents can be uploaded in PDF, Excel, Docs, JPG, PNG, and JPEG formats. No single file should exceed 5 MB in size.