Article 11 - Application to Form a Tax Group

Persons wishing to form a tax group must appoint one among them to act as the representative of the group, who shall submit the application for the formation of the tax group to the Authority, and such person shall be considered the representative of the tax group and shall be primarily responsible before the Authority for all obligations and rights arising upon the group on behalf of all its members, without prejudice to the joint liability of the remaining members of the group among themselves for all tax obligations, penalties, and any other obligations imposed under the Law and the Regulations that arise during their period of membership therein.^[12]

The application for the formation of the tax group shall be submitted using the form prepared by the Authority, and the form must include, at a minimum, information regarding all members of the group in accordance with what is stipulated in Article 8 of these Regulations, in addition to a copy of the agreement concluded between the members of the group that includes the appointment of the tax representative and evidence of the representative’s consent to the appointment. The agreement shall be deemed a resolution by the tax group confirming compliance with all conditions and provisions related to registration as a tax group.^[13]

The Authority may request that the Tax Group representative provides any documentation, in electronic or physical form, to verify that the information contained in the application is valid and that the Persons are eligible to be registered as a Tax Group. The representative legal Person must be given twenty (20) days, as a minimum, from the date of request to provide this documentation.

The Authority may refuse an application for registration where the information contained in the application is not valid or the legal Persons are not eligible to be registered as a Tax Group. A notification of refusal must be provided to the Person making the application.

The Tax Group establishment takes effect from the first day of the month following the month in which the application is approved or such later date as determined by the Authority.

In the event that the Authority approves the application for registration of the tax group, the tax group shall be treated—for the purposes of applying the Law and the Regulations—as a single taxable person, independent from the persons participating in it. The Authority shall issue a new registration certificate with a new tax identification number for the group, notify the representative of the group thereof, and deactivate the tax identification numbers of the group members who were previously registered individually.^[14]

The registration of the tax group entails the following provisions:

1. Any economic activity carried out by any member of the tax group shall be deemed to have been carried out by the tax group itself.

2. Any supply made by any member of the tax group shall be deemed to have been made by the tax group.

3. Any import of goods or services made by any member of the tax group shall be deemed to have been made by the tax group.

4. Any output tax imposed on any member of the tax group shall be considered imposed on the tax group.

5. Any input tax borne by any member of the tax group shall be deemed to have been borne by the tax group.^[15]