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Looking to cancel your VAT registration in the UAE? Understanding the de-registration of VAT in UAE is crucial for businesses that no longer meet the mandatory registration criteria. Whether your company has ceased operations, fallen below the taxable threshold, or undergone structural changes, applying for VAT deregistration in UAE is a legal requirement.
At Shuraa Tax, we simplify the VAT deregistration in UAE process, ensuring compliance with Federal Tax Authority (FTA) regulations while avoiding unnecessary penalties.
VAT deregistration in UAE refers to the official cancellation of a company’s VAT registration with the Federal Tax Authority (FTA). This process is necessary when a business no longer meets the eligibility criteria for VAT registration . Companies must comply with VAT Law requirements when applying for deregistration to avoid fines and legal consequences.
Understanding the different types of VAT deregistration in the UAE is essential for businesses looking to comply with tax regulations while ensuring a smooth exit from the VAT system.
Entities must meet specific requirements for de-registration of VAT in UAE as per FTA regulations. A registered company must apply for VAT deregistration in Dubai if it stops selling taxable products and services.
Moreover, a taxable person must deregister if their annual turnover or taxable purchases over the previous 12 months fall below the AED 187,500 threshold. Failure to apply for VAT de-registration UAE within the stipulated 20 business days results in AED 10,000 or more penalties.
Businesses may opt for voluntary VAT deregistration services in Dubai under two circumstances:
With no specific time restrictions, businesses can apply for voluntary VAT de-registration UAE at their convenience, ensuring all compliance requirements are met.
The FTA authorises VAT deregistration UAE for tax groups under the following conditions:
Once the deregistration of VAT in UAE is approved, the VAT number issued upon registration is revoked. Businesses wishing to re-register can apply and obtain a new VAT number.
The VAT deregistration process in UAE involves the following steps:
Businesses must submit the following documents for VAT deregistration in Dubai:
Many businesses face penalties due to errors in VAT deregistration. Some common mistakes include:
The effects of VAT deregistration in the UAE are as follows:
Once deregistered, businesses cannot charge VAT on sales, which can lower prices for non-VAT-registered customers. However, VAT on business purchases can no longer be claimed.
Deregistering from VAT eliminates the need to file VAT returns, reducing compliance costs and time spent on tax management.
Businesses should reassess their financial strategy as VAT deregistration affects cash flow and pricing competitiveness.
Navigating VAT deregistration in UAE can be complex and requires compliance with FTA regulations. Our expert team ensures a smooth and hassle-free process by:
If your business qualifies for VAT deregistration in Dubai, contact Shuraa Tax today for professional assistance in seamlessly managing your tax obligations.
Below are the services which Shuraa Tax offers:
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