VAT De-Registration in UAE: Everything You Need To Know

In the UAE, when a business or individual decides to cancel their VAT registration with the Federal Tax Authority (FTA), it's known as VAT de-registration. This can happen for various reasons, but it must comply with the conditions set by the VAT law. If the reasons are valid and meet the requirements, the FTA will approve the application for de-registration.

For businesses and individuals subject to VAT, cancelling their registration is just as crucial as the initial registration. They need to understand the rules and process of VAT cancellation in the UAE, as failure to apply within the specified timeframe may result in administrative penalties.

VAT De-Registration in UAE

In the UAE, a company should apply for VAT de-registration under specific circumstances:

• If the company has stopped producing taxable goods and has no plans to create any taxable stocks in the next 12 months.
• If the company is still producing taxable goods, but the total value of its sales in the first 12 months is below the voluntary registration threshold of AED 187,500.
• If the company is producing taxable goods, but its sales in the previous 12 months were below the mandatory registration threshold of AED 375,000.
• If 12 months have elapsed since the company's initial registration date.

However, a company that voluntarily registered for VAT cannot apply for VAT de-registration.

Time Frame for VAT De-registration

If a business experiences any of the situations mentioned earlier, it must apply for VAT de-registration within 20 business days. Applying for VAT de-registration is straightforward, and registrants can do it through their FTA portals.

If a company is closing down, they need to obtain a company liquidation letter from the government authorities before applying for VAT de-registration.

How to Apply for VAT De-Registration in Dubai?

Here's a simplified version of the steps for businesses to complete their VAT de-registration:

Step 1: Log in to your FTA VAT portal.

Step 2: Find the 'De-Register' button next to your VAT registration on the dashboard and click on it.

Step 3: Your taxable person details will be automatically filled in the de-registration application.

Step 4: Choose the reason for VAT de-registration from the options provided:

• Business no longer making taxable supplies
• Business making taxable supplies but below the Voluntary Threshold
• Business is making taxable supplies above the Voluntary Threshold but below the Mandatory Threshold.
• If there's another specific reason, please specify it.

Step 5: Select the effective date for the de-registration, depending on your circumstances.

Step 6: Upload all relevant supporting documents by clicking on 'Choose Files.'

Step 7: Before submitting, review and confirm the authorized signatory and declaration section in the application form.

Once a business applies for VAT de-registration in the UAE, the FTA will review the application. If approved, the VAT status will change to 'Pre-Approved.' After this, the business needs to file the final VAT Return. Once the last VAT Return is filed, the business must settle all outstanding liabilities to successfully complete the VAT de-registration process.

VAT Services in Dubai

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