What is the process for forming a tax group?

The process for forming a tax group is as follows:

• After each member who wishes to form a tax group has individually complied with the eligibility criteria, it must be determined whether the group as a whole is eligible to register for VAT. The group will be eligible if they comply with either one of the following criteria:

  • If at least one member has satisfied the registration requirements.

  • If the total value of VAT-liable supplies and purchases made by the prospective group complies with the registration requirements.

• The next step in the registration process involves the members of a tax group nominating one member among them as the representative member of the tax group. The tax returns of the group will be filed in the name of this representative member. 

• If none of the members of the group have been previously registered for VAT, then the potential representative member will have to submit a VAT registration application and tax group registration application. However, if the members have been registered for VAT previously, then the representative member only needs to finish the tax group registration application.