The process of terminating a VAT registration is known as VAT Deregistration. But in the United Arab Emirates, de-registration of VAT refers to the cancellation of a company’s VAT registration with the Federal Tax Authority (FTA). A previously taxed firm or individual may choose to revoke their registration for VAT in the UAE for several reasons. These explanations must meet the requirements set forth in the VAT Law. The FTA might reject the application to deregister if the reasons aren’t good enough and the conditions aren’t met.
As crucial as it is to register for VAT is the deregistration process for taxable people and enterprises. Due to administrative penalties for failing to submit an application within the deadline stated in the tax law, businessmen must be aware of the regulations and procedure for VAT cancellation in the United Arab Emirates.
Mandatory VAT Deregistration
Entities must meet specific requirements in order to deregister for VAT in accordance with FTA regulations.
A registered company must apply to the Authority for de-registration when it stops selling taxable products and services.
The Taxable person required to deregister without choice if the annual turnover should be the Value of taxable supply/sales or taxable purchases over the previous 12 months falls below the AED 187,500 level for VAT registration.
If you don’t apply for VAT deregistration in the UAE within the allotted 20 business days, you’ll be subject to fines. If a company fails to apply for the required VAT deregistration, there is an AED 10,000 fine or above.
Voluntary VAT Deregistration in the UAE
In the UAE, voluntary VAT deregistration may occur in one of two circumstances. You may voluntarily deregister from VAT if your 12-month annual turnover was less than AED 375,000. Nevertheless, it is required if the amount is less than AED 187,500.
In the UAE, there is no time restriction on when to conduct voluntary VAT deregistration. To guarantee a successful deregistration, you must enlist the help of expert tax professionals with experience and a track record of accomplishment.
VAT Deregistration for Groups
The following conditions of VAT registration will be authorized by FTA:
- if the registered business is no longer able to meet the requirements for the Tax Groups.
- If there is no longer an association based on economic, financial and regulatory practices.
- If there are serious grounds for believing that if the registration as a Tax Group is permitted to continue, it would enable Tax Evasion or would significantly decrease Tax paid to the Authority.
The authorities will revoke the VAT number issued upon registration as soon as the deregistration number is accepted. Any company that wants to reregister can fill out the registration form again, and they will be given a new VAT number.
How to apply for FTA VAT De-registration in UAE?
In the UAE, VAT deregistration is easy, but you must follow the fundamentals correctly. Are you certain that your company qualifies for UAE VAT deregistration?
Imagine that you want to pay VAT while not being eligible or that you understate the annual taxable turnover. If it happens, the FTA may deny the application or even fine the applicant. As a result, caution is advised when completing VAT deregistration in the UAE. The following is the deregistration procedure:
- Visit the official website of the FTA to access your VAT account.
- Complete the form for VAT deregistration. Don’t forget to state the cancellation’s justification.
- Select “Submit” from the menu. For reasons of verification, a message will be sent to the registered mobile number.
The FTA will examine your application after you submit it. The explanation you gave for the VAT deregistration in the UAE will then be verified. Along with reviewing the VAT Return Filing status and outstanding tax payments, they will also look for any outstanding penalties.
Additionally, the FTA will only authorize the deregistration if they deem the justification appropriate. You also ought to have filed returns and paid all the tax liabilities owing.
If you want to grow your business or look for new partners, you shouldn’t keep going with the VAT refund process. If this happens, it is best for the company to keep the TRN and file a tax return with a ZERO amount if it thinks it will be successful in the next twelve months.
Timeframe for De-registering for VAT
Where it requires the taxable person to deregister, a registrant has 20 business days to apply for VAT deregistration. By logging onto their FTA portals, registrants can quickly submit an application for VAT deregistration.
Role that Shuraa Tax plays in the De-registration Procedure
In accordance with UAE VAT regulations, Shuraa Tax offers professional services for VAT Deregistration in the UAE. We examine every factor from A to Z and streamline the deregistration procedure for you. To simplify the process, we analyse your company’s operations and deregistration options from scratch.
Every business entity in the UAE needs VAT services, and we recognize the significance of this need and provide a comprehensive range of VAT services in the UAE.
Feel free to contact us if you have any questions concerning the UAE VAT De-registration procedure or about your present business. Shuraa tax consultants are available to help you out! Reach out to us by calling us on +97144081960, WhatsApp +971505795019 or email us on info@shuraatax.com.