15 July 2026 · Records & Exit
VAT Group Exit: Deregistration & Records
When a member leaves a UAE VAT group — whether the member is removed, the group changes composition, or the group is dissolved — the departing person must keep enough supporting documentation to show that any later adjustment relates to taxable supplies or expenses the group previously reported. FTA Directive No. 2 of 2026 makes this record-keeping explicit. In practice it means retaining the original tax invoices, the tax credit notes, the relevant group VAT returns or workings, the group entry and exit dates, and capital-asset registers. UAE records must generally be kept for 5 years, extended to 15 years for real-estate records, and produced if the FTA reviews the treatment. Without that bridge of evidence, the FTA can disallow the adjustment — so the exit file matters as much as the return entry itself.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Bridge the two eras
An adjustment made in your own return points back to a supply reported in someone else's — the group's. The FTA will want to see that link proven. The bridge is the original invoice, the credit note that reduces it, and the group return or working that first declared the transaction, tied together with your documented exit date.
- Original tax invoices for the supplies and costs.
- Tax credit notes with dates and amounts.
- The group's VAT returns or supporting workings.
- Your group entry and exit dates.
- The EmaraTax amendment confirmation.
- A short memo explaining each adjustment.
Keep it long enough
Standard UAE record-keeping rules apply to the exit file. Records are generally kept for 5 years from the end of the relevant tax period, extended to 15 years for records relating to real estate. Capital-asset registers should be kept for the whole scheme period, which can run beyond the general window.
- Generally 5 years of records.
- 15 years for real-estate records.
- Capital-asset registers for the scheme period.
- Measured from the end of the tax period.
- Held in a retrievable, auditable form.
- Produced promptly on FTA request.
Get the exit date right
Everything turns on the date you ceased to be a group member. Adjustment events before it are the group's; events on or after it are yours. Confirm the date from the EmaraTax amendment, not from an internal decision, and record it at the top of the exit file so every later entry can be allocated cleanly.
- Take the exit date from EmaraTax, not memory.
- Events before it belong to the group.
- Events on/after it belong to you.
- Record the date at the head of the file.
- Allocate each open item against it.
- Review borderline dates with your advisor.
Related guides
Frequently Asked Questions
For deregistration and records.
What proves an adjustment relates to the group?
The original invoice, the credit note, and the group return or working that first declared the transaction, tied to your documented exit date.
How long must I keep the records?
Generally 5 years from the end of the relevant tax period, extended to 15 years for real-estate records, and longer for capital-asset registers.
Does a dissolved group remove the obligation?
No. The still-registered person keeps the records and reports the adjustment; the group ceasing to exist does not delete it.
Where do I find my exact exit date?
From the EmaraTax amendment that removed you from the group — use that, not an internal decision date, to set the cut-off.
Can Exiloz organise the exit file?
Yes. We assemble the documentation the FTA expects, set the cut-off cleanly, and keep the capital-asset registers current.
Dissolving or leaving a group?
Exiloz builds the exit file the FTA expects to see.