VAT Deregistration

March 4, 2024

Understanding VAT Deregistration in the UAE

VAT deregistration involves the termination of VAT registration for registered businesses. When a taxable business ceases operations or no longer requires VAT registration, the deregistration process becomes necessary. Applying for VAT deregistration is mandatory for taxable businesses, and upon approval of the request and submission of relevant documents, the FTA will cancel the registration.

VAT deregistration is as important as VAT registration, and businesses must be aware of when and under what circumstances to apply for deregistration in the UAE. Failing to do so within the specified timeframe may result in significant penalties.

VAT Deregistration Requirements in the UAE.

Registered businesses that are no longer involved in taxable supplies can request deregistration from the FTA. Additionally, VAT-registered enterprises with taxable products and services falling below the mandatory threshold of AED 375,000 but above the voluntary threshold of AED 187,500 are eligible for voluntary deregistration. However, if the business’s taxable supplies drop below the voluntary threshold, VAT deregistration becomes mandatory.

According to FTA regulations, there are two types of VAT deregistration:

  1. Voluntary VAT Deregistration:

The business ceases to engage in taxable supplies.

The total value of taxable expenses or supplies in the previous year and the following thirty days does not exceed the threshold for voluntary VAT registration in the UAE.

  • Compulsory VAT Deregistration:

Applicable to taxable suppliers (both goods and services).

If a business has been voluntarily registered for VAT with the tax authorities for twelve consecutive calendar months, it becomes eligible for deregistration.

VAT Deregistration must be completed within 20 days. Failure to submit the VAT Deregistration within the FTA’s specified timeframe may result in penalties.

VAT Deregistration Assistance in the UAE

When it comes to VAT deregistration, gaining approval from the Federal Tax Authority (FTA) is crucial. Our team can help ensure that your deregistration petition has a higher chance of being accepted. Our authorized tax consultants will handle the entire VAT deregistration process for your business.

Through our regulated tax agents in the UAE, we provide comprehensive assistance and essential information to successfully complete the deregistration procedure. Our services cover a range of VAT-related matters in the UAE.

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