Steps in De-Registering a Tax Group
It is well-known that the UAE has been considered as a favourable destination by entrepreneurs, business owners, freelancers. The region provides a platform for business organizations to establish their roots and grow to national and international level. The UAE stands as a member of the GCC countries, and an important step was taken forward to implement VAT to all GCC nations. This became a compulsion for all the business entities to enter into VAT transactions and pay tax accordingly. The concept of Tax Group came into existence which eases the process for business entities. However, the situation might arise where companies want to de-register the tax group. This article focuses on the same and will provide you with complete information regarding the necessary steps involved in de-registering a tax group. If you are a business owner and is included in the tax group, then this article is for you.
Gist About Tax in the UAE
On 1st Jan 2018, the Government of UAE has successfully implemented the VAT at 5% intending to diversify the revenue source. The tax in UAE has been considered as a successful move as it ends improving businesses to a great extent. This enables all the business entities available in the UAE to enter into VAT transaction at every stage, and Tax Audit at a later stage.
Tax Group in a Nutshell
The concept of tax group came into existence to help business entities to pay their tax. In a tax group, two or more business entities form a group to get categorized under the same tax group, which helps them to share the tax %. There exists a possibility that once a company enters into a tax-group, they might want to amend or de-register it. Let’s have a look at the possible reasons that might lead a business entity to amend a tax-group.
