Executive regulation to the Decree-Law provides for tax registration of two or more persons as single tax group as compared to multiple single registration by each person. Provided following conditions are fulfilled:

1.       Two or more persons conducting business.

2.       Each has a place of establishment or fixed establishment in the state.

3.       Persons are related parties.

4.       Persons conducting business in a partnership controls the others.

5.       Persons form an association as a result of economic, financial and regulatory parties in business.

5(a) makes taxable supplies or importing concerned goods or services.

5(b) if all taxable supplies + import of concerned goods and services exceeds the mandatory threshold limit.

The authority as deem fit may reject any application for registration of tax group on the grounds of:

1.       If above conditions are not satisfied.

2.       Where any one person of the applied tax group is government entity.

3.       Where one of the person is charity.

4.       Any persons are not a legal person.

5.       On account of tax evasion or decrease in tax paid.

6.       Where grant of tax group shall result in increase of administrative burden.

Decision of Authority:

Authority shall take decision regarding application within 20 business days from the date of receipt of application by the authority.


1.       Representative members of the tax group shall apply for registration.

2.       Date of registration shall be:

·         The first day of the following tax period in which the application is received.

·         Any other date as may be determined by authority.

Responsibility on representative members:

1.       Business carried on by any member of the tax group would be deemed to be carried on by the representative member.

2.       Any taxable or non-taxable supply shall be deemed to be made by the representative member.

3.       Import of concerned goods or services by member shall be deemed to be import by representative member.

4.       Output tax charged shall be deemed to be charged by representative member.

5.       Input tax incurred shall be incurred by the representative member.

6.       Any supply of goods or services to a member of tax group from a non-member.

Tax liability:

1.       All members shall remain personally and jointly liable for any tax payable of the representative members.

2.       Supply by one member of tax group to another member of the same tax group may be disregarded.

Authority of the representative members:

1.       Add another person to become member of the tax group.

2.       Remove any number of the tax group.

3.       Nominate another member of the tax group to be representative member.

4.       Deregister the tax group.

Appointment of representative member:

Any person registered as member of the tax group shall be nominated to be the representative member of the tax group.


Any notification by the authority, which is addressed to be representative member of any tax group shall be deemed to be served on that representative member and on all other members of that tax group.


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The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.

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