VAT Group Registration
What is Group registration?
Group registration is the process by which 2 or more legal persons apply grouped together for the purposes of VAT treatment. The Group is treated as a single Taxable Person with consolidated Supplies and joint responsibility if the General Authority of Zakat and Tax (GAZT) approves the Group registration application.
When is it possible to register as a VAT Group?
Taxpayers may wish to register as a VAT Group, provided they meet all the following criteria
- Each legal person is a resident in Saudi Arabia and carries out an economic activity
- Each legal person is under common control
- At least one of the legal persons is a taxable person eligible to be registered for VAT in its own right
This is particularly relevant for large companies and their subsidiaries.
As long as one member of the Group is a taxable person, other entities whose annual taxable supply is below the voluntary registration threshold are eligible to join a VAT Group.
How to register for a VAT Group?
A request to form a VAT Group should be made by one of the Group members – who must already be individually registered for VAT. The Group representative will have the primary obligation to comply with the obligations and rights of the Group on behalf of all members, without prejudice to the joint liability of the remaining members of the Group.
As part of the registration process, the applicant will be required to provide supporting documentation to evidence that the eligibility criteria are met.
If the application is approved by GAZT, the VAT Group will inherit the VAT account number of the Group representative. The VAT account numbers of the other Group members will be deactivated. Deactivation of the VAT account number prevents Group members from receiving individual filing obligations but it does not mean that they are deregistered from VAT.
Group registration is available on the GAZT e-portal.
Information required from the Group Representative:
- VAT eligible sales / purchases information at the total Group level
- Effective date requested for Group registration
Information required for other Group members:
- Tax Identification Number if any
- VAT eligible sales / purchases information
- Proof of association with Group member with common control, e.g.
- Articles of association / memorandum of association
- Audited documents such as audited financial statements
- Other documents evidencing “common control”
VAT Guideline for VAT Grouping is coming soon, stay tuned.
For clarification on requirements, or all VAT-related queries, please call toll free number 19993. The hotline is open from 8am to 8pm Saturday to Thursday.