Can related UAE companies register as one VAT group?
Yes. Article 14 of the VAT Decree-Law allows two or more businesses 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 control the others. The group has one TRN and is treated as a single taxable person.
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Effects
The group is treated as a single taxable person with one TRN and files one return. The FTA can also register related parties as a group itself, and can add or remove members.
Why contractor groups use it
A contracting company, a plant-hire company and a trading company owned together can avoid charging VAT on internal recharges. Under Ministerial Decision 197 of 2026, transactions between members of the same tax group are also excluded from e-invoicing for 24 months from 1 January 2027.
How SupaJack Construct helps
Each company is kept as its own organisation with its own ledger and VAT figures. Combining them into a single group return is done outside the system.
Related tools and guides
See the VAT guide for contractors, the VAT calculator, the payment certificate calculator, the retention calculator, finance and VAT in SupaJack Construct, the answer on whether a payment certificate triggers VAT and the meaning of e-invoicing.
Worked example
A contracting company and its plant-hire sister company, both owned by the same holding company in Dubai, register as a VAT group. Plant hire charged between them carries no VAT, and the group files one return covering both.
Questions people ask
Must all members be in the UAE?
Each needs a place of establishment or fixed establishment in the UAE.
Does the group get one TRN?
Yes.
Can the FTA force a group?
It can register related parties as a group under Article 14.