VAT Deregistration in UAE

VAT Deregistration Service in UAE

VAT deregistration is the provision to cancel the VAT registration with the FTA. Companies should know the eligibility for VAT deregistration. VAT deregistration should be applied within 20 days once companies become eligible for deregistration. In case of negligence to apply within the time period may attract a penalty of AED 10,000.  VAT deregistration can be applied through this website —> Click here

Eligibility for VAT deregistration

VAT deregistration can be compulsory or can be made voluntarily depending on the threshold sum of taxable supplies in the company.

The voluntary threshold sum isAED 187,500 and the mandatory threshold sum is AED 375,000.

A company can apply for VAT deregistration if it’s under these criteria:-

The date from which the company is required or eligible to deregister depends on the basis.

Closed businesses should have a liquidation letter from the authorities to apply for VAT deregistration.

VAT De-registration application and approval

The online application for VAT de-registration should be submitted with a valid reason and details. The applicant will get a confirmation SMS on their registered mobile number.

FTA will verify the application for valid reasons along with outstanding tax payments, pending penalties, and status of returns.FTA will approve the application and cancels the VAT registration if everything was in accordance with the rules and regulations.

VAT Deregistration for Groups

The process of VAT de-registration for groups is the same as that of individuals. The deregistration for VAT groups is approved for the following valid reasons

1.If an entity fails to meet the requirements to be as a group, FTA will approve the de-registration of the VAT group.

2. FTA will approve the deregistration if the constituent member companies are no longer financially associated with the group.

3.FTA can also deregister a group if it predicts the tax status of a group may lead to tax evasion

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