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VAT Deregistration in UAE

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VAT Deregistration In UAE

Businesses owners in the United Arab Emirates many times opt to cancel their VAT registration for multiple reasons. The Federal Tax Authority (FTA) allows a taxable person to deactivate or cancel their Tax Registration Number (TRN). The VAT deregistration in UAE is as significant as the VAT registration for companies. The value-added tax laws stated a very clear threshold and procedure to apply for VAT cancellation in UAE. Here we briefly discuss each and every aspect related to deactivating the VAT on supplies.

What Is FTA VAT Deregistration?

The VAT deregistration in UAE is an online process of suspending the business Tax Registration Number (TRN). The taxable entity that is registered under FTA can apply for deregistration of VAT. Taxpayers can make this decision by themselves or hire a VAT consultant in Dubai, Abu Dhabi, and any other Emirate to avoid penalties.

How To Apply For Deregistration Of VAT In UAE?

A business or an individual can apply for VAT Deregistration in UAE if they fall under any eligibility criteria of mandatory or voluntary VAT cancellation. As mentioned below:

  • Voluntary VAT Deregistration

If the business entity no longer makes taxable supplies and doesn’t expect to make them in the next 12 months. In that case, they are eligible to apply for VAT deregistration in UAE.

The second scenario is that when a business turnover is decreased by AED 375,000 and does not exceed AED 187,500 in the 12 months after registering with the FTA, they can apply for voluntary VAT deregistration.

  • Mandatory VAT Deregistration

The person or business is applying for mandatory VAT deregistration in UAE, when the taxable supplies turnover is below the voluntary threshold of AED 187,5000.

Time Period For VAT Deregistration

The specified time frame for VAT deregistration in UAE is 20 working days from the above-mentioned situations. An application for deregistration of VAT must be filed within the deadline on the online FTA portal.

Late VAT Deregistration Penalty

The businesses must submit VAT Deregistration in the specified tax period. If an entity fails to submit VAT cancellation, they are subject to a late de-registration penalty of AED 1,000 for every delayed month. The best way to comply with all value-added tax laws is to outsource VAT services in Dubai.

VAT De-registration Process In Emirates

Due to the lack of knowledge of UAE authorities many taxable persons have queries about how to apply for FTA VAT deregistration? But we will guide you in each step of submitting a VAT cancellation application by following all regulations. Also, the government authorities must make sure that a company liquidation letter is available before it’s going to apply for VAT deregistration in UAE.

Step 1: Login To FTA Portal

The foremost step is to log in to the Federal Tax Authority (FTA) online portal. The registered email address and password are required to sign in. In the VAT registration tab, a VAT cancellation option is available. Just push the button ‘De-Register’ and start your process of VAT deregistration in UAE.

Read more VAT Registration

Step 2: Add Information To Form

The next step is to add all required information and documents to the de-registration application. The taxable individual basic details are pre-populated in the form. Add a preferred deregistration date for VAT in the section from which the entity is eligible to de-register. Click the Choose Files button to upload all relevant supporting documents. Select the basis on which you want to de-register for VAT from the drop-down menu.

  • Business no longer makes taxable supplies
  • Businesses making taxable supplies, but below the Voluntary Threshold
  • Businesses making taxable supplies, above the Voluntary Threshold, but below the Mandatory Threshold
  • Other – please specify the reason
Step 3: Review And Submit

The last step is to review the declaration and authorized signatory before submission of the application. Also, we advise businesses to review all details once because incorrect information may attract VAT penalties. Just click the ‘submit’ button and then FTA confirms your VAT Deregistration in UAE.

Deregistration For VAT Groups

The VAT group eligibility for VAT deregistration in UAE is the same as for an individual taxable person or business. Although there are certain conditions that must be fulfilled by the VAT group such as:

  • The authorities can approve VAT deregistration if a group is no longer considered to be a VAT group                
  • A taxable entity can cancel the VAT registration if a group of companies holds no financial ties to the group
  • An FTA may deregister a group if they anticipate the tax status will lead to tax evasion

BestaxCA Provides VAT Deregistration In Dubai

The VAT-registered business entities must be aware of how to deactivate the VAT registration by following all UAE tax regulations. The taxable entity many times skips the deadline for applying or submits inaccurate information which attracts unnecessary VAT penalties in UAE. In such a situation, our Bestax Chartered Accountants and VAT consultants in Dubai offer professional VAT registration as well as VAT deregistration services as per standards.  Our tax experts not only guide taxable businesses but also verify all your VAT records. BestaxCA helps companies in submitting error-free VAT deregistration in UAE without incurring penalties. Feel free to contact us!

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However, I was the head of the finance department yet still found it difficult to conduct a financial audit in accordance with UAE regulations. Although, due to the competence and experience of BextaxCA's qualified auditors, all my concerns have been resolved

ylie Johnson

Accounts Manager, Abu Dhabi, General Trading Company

I utilized BestaxCA's accounting and bookkeeping services for my retail business in Abu Dhabi. It was fascinating to observe how they handled the finances. They provided me with out-of-the-box accounting solutions, which were really useful

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

As per FTA requirements, the Bestax Chartered Accountants in UAE assisted me with VAT registration and filing. I personally consult with their tax experts to ensure they have the expertise necessary to provide timely answers

Abdul Kaleem

Finance Manager, Dubai, Manufacturing Company

I was so happy with the BextaxCA's services that I decided to use them for my personal tax planning and return filing. They really know their stuff when it comes to taxes!

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