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VAT Deregistration in UAE

There could be certain instances where a company needs to cancel its VAT registration. In other words, in VAT deregistration in UAE, the business removes itself from the VAT enrollment.

Companies must ensure that they have a genuine reason for VAT deregistration in UAE. If the reason is not genuine, FTA may also reject the application.

Depending on the situation, the FTA may also impose hefty penalties. Therefore, companies need an efficient and knowledgeable VAT partner like NR Doshi & Partners. They can provide practical guidance required for VAT deregistration in UAE.

Mandatory VAT Deregistration

In line with the FTA guidelines, entities must fulfill certain conditions during VAT deregistration.

  1. When a company stops dealing in taxable goods and services, it must deregister for VAT.
  2. When the annual turnover of the taxable supplies or expenses of the past twelve months becomes lower than the VAT registration threshold- AED 187,500, you need to deregister without option.

You have a time limit of 20 business days to apply for VAT deregistration in UAE, failing which you will be liable for penalties. The penalty is AED 10,000/- if a business fails to apply for mandatory VAT deregistration in UAE.

Mandatory VAT deregistration rules in the UAE, including thresholds, timelines, and FTA regulations for businesses
The process and reasons for voluntary VAT deregistration in the UAE

Voluntary VAT Deregistration in UAE

There are two situations where voluntary VAT deregistration in UAE can take place. If your annual turnover for the last twelve months goes below AED 375,000, you can perform voluntary VAT deregistration. However, please note that if it goes below AED 187,500, it is compulsory.

Suppose you had initially conducted voluntary VAT registration. In that case, you could choose to do voluntary VAT deregistration any time after twelve months from the registration date.

There is no time limit for conducting voluntary VAT deregistration in UAE. You need to entrust the services of experienced & qualified tax agents with proven track records to ensure successful deregistration.

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Process of VAT Deregistration in the UAE

VAT Deregistration in the UAE is simple, but you must get the basics right. Are you sure that your business is eligible for VAT deregistration in UAE?

Suppose you conduct VAT deregistration without eligibility or miscount the annual taxable turnover. In that case, FTA may reject the application or even impose a penalty. Therefore, one must be careful while conducting VAT deregistration in UAE. The deregistration process is as follows:

  1. Log in to your VAT account on the FTA’s official website.
  2. Fill in the VAT deregistration form. Do not forget to mention the reason for the cancellation.
  3. Click on the submit option. You will receive a message on the registered mobile number for verification purposes.

After you submit the form, the FTA will review your application. They will then check the reason you provided for VAT deregistration in UAE. They will also review the status of VAT Return Filing and pending tax payments while checking if there are any unpaid penalties.

Further, FTA will only approve the deregistration if they find the reason suitable. Furthermore, you should have cleared the entire outstanding tax amount and filed returns.

The VAT deregistration process in the UAE, covering mandatory and voluntary deregistration, required documents, and Federal Tax Authority (FTA) steps
VAT deregistration process including eligibility, documentation, and FTA approval

VAT Deregistration for Groups

The rules and processes of the group VAT deregistration in the UAE are the same for individual companies. However, the circumstances are a bit different.

The group VAT deregistration process is slightly different from the conventional VAT registration. Entities in the UAE must meet the criteria below-

  1. The registered entity does not meet the requirements to be considered a group.
  2. The registered entity is no longer financially associated with the group.

FTA may, on its own, initiate deregistration if it feels the registration gives rise to any tax evasion.

VAT Deregistration Could Be Complex- Get Professional Help to Avoid Errors

Sit back and relax- N R Doshi and Partners is there to handle the entire VAT deregistration process for you

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Why Choose N R Doshi and Partners’ VAT Deregistration Services in UAE?

We have experience conducting VAT deregistration in the UAE and VAT registration for many businesses.

Besides this, we also perform VAT accounting and return filing for businesses from various industries. We provide practical, cost-effective, and tailor-made financial services to our clients. Their long-term association with us is proof of our abilities. N R Doshi and Partners also provides services related to core business processes such as auditing and accounting.

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Our Strength

  • Firstly, we have tax consultants across the UAE. They can provide you with prompt & professional VAT deregistration services. We will ensure the completion of the deregistration process way before the deadline.
  • Secondly, we also provide VAT accounting services and return filing. We are ready to serve you if you need a VAT partner who can take care of all your VAT-related requirements

Testimonials

We had to conduct VAT deregistration as our annual turnover decreased. We were unaware of the entire process and we had a lot of confusion when we tried to do it ourselves. So, we chose to call N R Doshi and Partners for this job. They did it within no time, and it was all done.

We had stopped dealing in taxable supplies, and we wanted to deregister. We had limited time remaining. We explained the situation to NRD, and they understood the urgency. They saved us from paying a huge penalty by conducting the VAT deregistration on time.

FAQs

Businesses must file for VAT deregistration within 20 days (about 3 weeks) of qualifying. If they fail to abide by this rule, the FTA may impose a hefty penalty of AED 10,000 for the offense.

Considering the facts, in your case, it is not mandatory for you to apply for deregistration.

VAT registration FAQ section for UAE businesses seeking compliance clarity

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