If the tax group has only 2 members (include representative member) and one of them has stopped business, then the tax group no longer meet the grouping conditions. In this scenario the Tax group needs to be de-registered and the remaining company did not have a TRN before, fresh application has to be submitted for VAT registration.

Dear Sajith, Thank you for the comments. For better understanding, once you delete one company, the TRN gets cancelled for the other company? What will be the status of pending claims (applied for refund/not applied) and how to invoice? Tks,

If there are only two companies in the tax group, you need to submit De-register the group itself. For companies which had TRN prior to joining tax group, the old TRN would get reinstated. If the company did not have a TRN before, the FTA would ask to submit a fresh application for VAT registration during the de-registration process itself. FTA would allot a final tax return for the group which needs to be submitted and refund, if any, can be claimed as well. The effective date of de-registration and effective date of reinstatement of old TRN or date of registration of new TRN will coincide. So until that date, the tax group still exists.