Deregistration of VAT in UAE can be a costly decision. If your company is registered for VAT and you decide to deregister, you will need to pay a penalty.
Companies that are not registered for VAT and do not submit any supplies or transactions subject to VAT during any specific taxable period are considered “outside of scope” companies, and are not required to register for or VAT return filing." It is important that businesses are aware of the penalties for failing to deregister for VAT. If a business is found to be in breach of the rules, it could face fines and even criminal prosecution.
The United Arab Emirates (UAE) has introduced a value-added tax (VAT) system in the coming month. All businesses with an annual income exceeding AED 375,000 must be registered for VAT regardless of their size or sector.
VAT deregistration in UAE is a straightforward process, but it is important that businesses comply with the rules and make sure they complete their VAT deregistration correctly. It is a process that businesses have to complete when they no longer wish to pay VAT or are not eligible to do so. The penalty for failing to deregister can be heavy, and businesses must ensure that they are compliant with all applicable regulations.
In order to be eligible for VAT deregistration, businesses must meet certain criteria, as set out by the Federal Tax Authority (FTA). These criteria include but are not limited to:
It is important to note that businesses are only eligible for VAT deregistration if they have not been registered for more than one year. Any business that has been registered for more than one year will need to seek approval from the FTA before being allowed to deregister.
Please note that VAT deregistration must be applied for in the same way as registration, i.e. via the FTA portal, and only once all outstanding VAT obligations have been met. The process of deregistering for VAT should take no longer than 10 working days from when an application is submitted and approved by the FTA.
If your business meets these requirements then you should be able to proceed with the VAT deregistration process and if you want some more information on the process, then VAT registration in the UAE can provide advice and assistance with the process. The FTA has set up an online portal that allows businesses to complete their VAT deregistration and submit any relevant documents. Farahat & Co, the leading VAT consultant in Dubai can help to ensure that you are compliant with all relevant regulations so that your business does not incur any unnecessary penalties.
You should initiate your VAT deregistration process when any of the following applies:
You can apply for VAT deregistration in the UAE through the Federal Tax Authority’s (FTA) e-Services portal. Your UAE VAT consultants will provide you with step-by-step assistance to make sure your application is done correctly and on time.
You need to provide the following documents along with your application:
Not submitting a VAT deregistration application when it is due can lead to penalties and fines imposed by the FTA. Therefore, it is important that businesses seeking to deregister for VAT seek help from VAT consultants in UAE
in order to ensure their compliance with all regulations. We will be able to provide support and advice throughout the process of VAT deregistration in UAE.
These are just some of the key points to consider when applying for VAT deregistration in the UAE. We Farahat & Co can help make sure that you comply with all requirements during this process and avoid hefty penalties from the FTA. We are here to help with all your UAE VAT needs, so don't hesitate to reach out for assistance. Contact us today for more information about VAT deregistration and how we can help you stay compliant with the UAE’s Tax Laws.