Meaning of Sole Establishment A business that is 100% owned by a person. A sole establishment does not have a legal personality that is independent of its owner and is accordingly considered to be the same person as to its owner. It should be noted that, for VAT purposes, a One-Person Company LLC or other similar entities are not considered sole establishments, and are seen as a distinct and separate legal person from their owner. VAT registration Obligations of Sole Establishments: A person may own a number of sole establishments, which may undertake different lines of business.
- A person should include all its sole establishments under one VAT registration (One TRN No). Therefore, separate VAT registrations should not be sought for the different sole establishments
- If a person owns one or more sole establishments, the value of supplies made by the person and all its sole establishments must be combined to assess whether the VAT registration threshold has been exceeded.
Source: Federal Tax Authority