Businesses that satisfy certain requirements provided by the legislation (such as being under the same ownership and located within the same GCC country) will be able to register as a VAT group. For some businesses, VAT grouping will be a useful tool to simplify accounting for VAT.

There are many companies that have a sister concerns, businesses will be given the option to file VAT returns as a group with one Tax registration number. There will however by certain conditions the companies have to meet in order to use this option.
So the inter-company purchase or sale will not effect the companies VAT liability, does not have to be reported during the filing.
The primary purpose for VAT grouping is to simplify the accounting for VAT with many related or associate parties.

VAT grouping conditions:

VAT Grouping

We, at msi Alnoman and Ravi, are qualified to assist you through every step for your business. Our thorough knowledge in this field is ideal to guide your business, minimizing risk, to benefit your business.

Stay posted to know more about other VAT rules.To find more information on VAT you can visit the following:–

  1. Ministry of Finance
  2. Introduction to VAT
  3. Understanding VAT
  4. What do we need to when VAT comes into effect?
  5. Special VAT rules
  6. Reverse Charge Mechanism
  7. Categories of VAT
  8. Administration of VAT -FTA
  9. Time of supply
  10. What is supply
  11. FTA
  12. Penalties
  13. Challenge The FTA decision
  14. Filing Tax Return
  15. Registration
  16. Tax Audit

 

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