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In our previous article, we have learnt about deregistration and the process to be followed for de-registering an individual business under VAT. In this article, we will learn how to de-register or amend a tax group. A tax group is a group of 2 or more related parties registered as a single taxable person for the purpose of tax. A major benefit of registering as a tax group is that supplies between the members of a VAT Group are considered as out of scope of VAT and hence, VAT is not applicable. There are certain scenarios where the VAT registration of a VAT Group should be de-registered or amended. Let us understand the scenarios where de-registering or amending a tax group is required and the process for the same.
The scenarios which require de-registration of a tax group are:
In our article VAT Group registration, we have discussed the requirements for registering as a tax group. If the persons in the tax group do not meet these conditions, the tax group should must be de-registered.
A condition for registering as a VAT group is that the persons should be related parties, where one person can control the others either by Law or through the acquisition of shares or voting rights. If the persons do not have such an association, the tax group should be de-registered.
If the FTA has reason to believe that the tax group is involved in tax evasion or non-compliance, the FTA can de-register a tax group.
The scenarios in which a tax group can be amended are:
Hence, persons registered as tax groups under VAT should note the above scenarios where it is important to de-register or amend the tax group. The process to be followed for de-registering or amending a tax group is similar to the process for de-registering an individual registration.