VAT Deregistration Service in Dubai, UAE
Deregistration of VAT in UAE
Are you considering UAE VAT Deregistration for your business in the UAE? Understanding VAT regulations can be difficult and confusing for a new business operating in the UAE, and understanding the right steps for deregistration is crucial. Farahat & Co. is here to simplify the process for you. With the guidance of our VAT consultant in the UAE, understanding the intricacies of VAT deregistration in the UAE becomes hassle-free and straightforward.
VAT deregistration in the UAE refers to the process by which a registered business opts to cancel its VAT registration. This is necessary if a business’s taxable turnover falls below the mandatory registration threshold or if the business ceases to make taxable supplies. Businesses must comprehend the key terms associated with VAT deregistration to comply with UAE tax regulations.
VAT Deregistration Threshold
- Mandatory Deregistration: This occurs when a business ceases operations or when its taxable turnover falls below the voluntary registration threshold of AED 187,500.
- Voluntary Deregistration: Businesses can request voluntary deregistration if their taxable turnover is above AED 187,500 but below the mandatory registration threshold of AED 375,000.
VAT Deregistration Rules in UAE
According to the Federal Tax Authority (FTA) of the United Arab Emirates (UAE), businesses must apply for tax deregistration if they meet the following conditions:
- Conditions for Tax Deregistration: The Registrant must apply for tax deregistration if he stops making Taxable Supplies if the value of the Taxable Supplies made throughout (12) consecutive months is less than the Voluntary Registration Threshold i.e. AED 187,500, and if the value of his Taxable Supplies during the past (12) months was less than the Mandatory Registration Threshold i.e., 375,000.
- Application Timing: Registrants meeting these conditions must apply for VAT deregistration within 20 business days of the relevant conditions occurring.
- Effective Deregistration Date: Deregistration is effective from the last day of the tax period during which the conditions for deregistration were met or an alternative date as determined by the Authority.
- Deregistration Preconditions: Registrants must settle all outstanding tax amounts and administrative penalties and file all due tax returns to be deregistered.
How to Deregister VAT in UAE?
The process of deregistering for VAT in the UAE involves several steps:
- Submit Deregistration Application: The business owner or authorized personnel needs to log in to the FTA’s online portal and submit the VAT deregistration application along with the required documents.
- Document Submission: The business must submit documents such as financial statements, purchase and sales invoices, and VAT returns to support the deregistration application.
- FTA Review: The FTA will review the application and documents submitted. If everything is in order, the FTA will approve the deregistration request.
- Deregistration Certificate: Upon approval, the FTA issues a deregistration certificate, confirming that the business is no longer VAT registered.
VAT Deregistration Process for Groups
The process for the Deregistration of VAT in UAE for the groups is the same as that for individuals. The difference is in the criteria specified for Groups that were registered for VAT.
In addition to other requirements being fulfilled, the groups need to have the following reasons become valid for them to get their VAT registration canceled:
- FTA will approve the cancellation of VAT registration for a group if the registered entity no longer meets the requirement to be considered as a group.
- FTA can also approve the VAT deregistration for the group if the companies in the group are no longer financially associated with the group.
- FTA can also take the initiative to cancel the VAT registration of a group if it foresees the tax status as a group can result in any sort of tax evasion.
Farahat & Co provides expert services of VAT Registration and Deregistration in compliance with the VAT laws, we can provide you with state-of-the-art services. Get our quality VAT consultation services to worry not for any VAT deregistration penalty related to VAT.
Why Choose Farahat & Co. for VAT Deregistration Services?
At Farahat & Co., we understand the challenges businesses face when it comes to VAT deregistration. Our dedicated team of VAT Consultants in the UAE specializes in offering personalized solutions designed to meet your business requirements. Here’s why you should choose us:
- Assessing Deregistration Eligibility: Our first step is to assess your business to determine if it meets the VAT deregistration criteria. We analyze your turnover, financial records, and other relevant factors to establish eligibility.
- Documentation and Paperwork: We handle all the documentation required for VAT deregistration. Our experts compile and organize the necessary paperwork, ensuring accuracy and completeness to avoid delays in the process.
- Submission and Follow-up: We submit the deregistration application on your behalf and follow up with the relevant authorities. Our team ensures that your application is processed promptly, keeping you updated throughout the process.
- Final Compliance Check: Before completion, we conduct a final compliance check to ensure that all aspects of VAT deregistration have been addressed. This step is vital to avoid any future complications related to tax compliance.
Ready to Deregister for VAT? Let Farahat & Co. Guide You!
Deregistering for VAT doesn’t have to be complicated. With Farahat & Co., you can navigate the process smoothly and efficiently. Our expert team of VAT Consultants in the UAE is here to assist you at every step, ensuring your business complies with VAT deregistration rules. Contact us today for reliable and efficient VAT deregistration services that match your business needs.
Frequently Asked Questions
How Do I Deregister From VAT?
Businesses can deregister from VAT in the UAE by submitting a deregistration application form through the Federal Tax Authority’s online portal.
When Can a Company Deregister for VAT in UAE?
A company can deregister from VAT in the UAE if it no longer meets the VAT registration requirements or if it has ceased.
What Does UAE VAT Deregistration Mean?
VAT deregistration in UAE refers to the process of removing a business from the VAT register.
What Are the VAT Deregistration Penalties in UAE?
There are no penalties for deregistering from VAT in the UAE within a specified time frame, however, if the Registrant does not submit a deregistration application within the timeframe stipulated in the VAT law, they will be penalized with a fee of 1,000 AED for each delay and every month thereafter until it reaches a maximum penalty of 10,000 AED
Who Can Submit the Application for Deregistration?
The application for VAT deregistration can be submitted to the Federal Tax Authority (FTA) by the VAT Registrant, tax agent, or legal representative.
What is Considered a Late Deregistration Case, and Will I Be Penalized by the FTA?
If the Registrant fails to submit a deregistration application within the specified timeframe in the Tax Law, a penalty of 1,000 AED is applied for the delay. This penalty accrues monthly, up to a maximum of 10,000 AED.
Do I Need to Submit VAT Returns Within the Specified Due Dates While My Deregistration Application Is Being Reviewed by the FTA?
Yes, you must submit all VAT returns within the specified deadlines until the deregistration application undergoes review, and the final return is processed.
How Long Does the FTA Typically Take to Finalize the VAT Deregistration Process After Receiving the Application?
Normally, the FTA requires approximately 20 business days from the date the complete application is received for processing. However, if extra details are necessary, the FTA might extend the review period.
Can the EmaraTax Account Remain Active and Accessible After VAT Deregistration?
Yes, the EmaraTax account remains accessible even after deregistration.
Can I Deregister for VAT if My Business Is Temporarily Closed?
Yes, businesses in the UAE can apply for VAT deregistration if they are temporarily closed, and their turnover falls below the VAT deregistration threshold. However, proper documentation and compliance with regulations are essential.
