What is VAT Deregistration?

VAT deregistration in UAE allows a taxable person or a business to cancel their VAT registration and suspend their Tax Registration Number (TRN). FTA VAT Deregistration is an online process.

Only the businesses and individuals who are registered under Federal Tax Authority (FTA) can de-register from VAT. Late VAT Deregistration penalty will be AED 10,000.

Who must /can de-register for UAE VAT

A business or a person registered under VAT can only apply for VAT Deregistration in the following circumstances:

·        If the business or a person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period then they must apply for VAT Deregistration.

·        If the business or a person is still making taxable supplies but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold (AED 187,500) then they must apply for VAT Deregistration.

·        If the business or a person is still making taxable supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold (AED 375,000) and 12 months have passed since the date of registration if you were registered voluntarily then you may apply for VAT Deregistration.

“Note that a person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration. Late VAT Deregistration fine will be AED 10,000.”

Time Frame for VAT De-registration

A registrant must apply for VAT deregistration within 20 business days from the occurrence of the above-mentioned events. Registrants can easily apply for VAT deregistration by accessing their FTA portals.

“IMPORTANT: Please note, if the date of submission of this de-registration form is more than 20 business days from the date the Taxable Person is required to de-register then you will be subject to a late de-registration penalty of AED 10,000.”

Companies that are getting closed must have a company liquidation letter from the government authorities to apply for VAT Deregistration.

How to apply for FTA VAT De-registration UAE?

Businesses can complete their VAT Deregistration by log in to their VAT portals:

·        Step 1 – Sign in to your FTA VAT portal.

·        Step 2 – On the dashboard, against the VAT registration, click on the ‘De-Register’ button.

·        Step 3 – Taxable Person Details are pre-populated in the de-registration application.

·        Step 4 – Reasons for VAT de-registration. Select from the drop-down list that on what basis you are de-registering for VAT.

1.      Business no longer making taxable supplies.

2.      Business making taxable supplies, but below the Voluntary Threshold

3.      Business making taxable supplies, above the Voluntary Threshold, but below the Mandatory Threshold

4.      Other – please specify the reason.

·        Step 5 – Effective date from which the Taxable Person is required or eligible to de-register depends based on the de-registration

·        Step 6 – Upload all the relevant supporting documents by clicking on ‘Choose Files’.

·        Step 7 – Review and confirm the authorized signatory and declaration section of the application form before submission.

“After applying for the VAT Deregistration in UAE, FTA will review the application and if they confirm the VAT De-registration the status of VAT De-Registration will be changed to ‘Pre-Approved’. After that the businesses have to submit final VAT Return Filing, after the last VAT Return filing the businesses must clear all the outstanding liabilities in order to complete the VAT Deregistration process.”

GoTrack Tax Consultancy will assist you in de-registering your company from FTA. GoTrack will ensure that the process of VAT deregistration will be completed without getting any VAT fines from FTA. For all kinds of VAT services in UAE, Feel free to contact us!