VAT deregistration is the process for a registered taxable person to cancel the VAT registration. The main purpose is to deactivate the registration and remove the VAT number of registrants. Tax deregistration can be applied by a person registered under VAT or done by Federal Tax Authority on finding that a person meets the condition for deregistration. The VAT Law provides registered taxable persons with the facility to cancel their VAT registration. Let us understand the circumstances in which a person can de-register under VAT and the process to be followed.
A person registered under VAT can apply for Tax De-registration in the following cases:
Tax authorities approve deregistration if the tax authorities are satisfied with the conditions of vat cancellation. The valid reason shown should be verified by the authorities for the voluntary deregistration of VAT.
When the tax authorities themselves cancel the tax registration if they are satisfied with the conditions of cancellation of VAT. If the tax authorities verify that the firm is neither making any profits or does not intend to make any profit in the future, it mandatorily deregisters the person.
you maGuide on Deregistering or Cancelling VAT Registration in UAE
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The common process for deregistration under vat is mentioned below:
The decision of approval by the federal tax authority depends on the provided reason as well as the clearance of all:
• Returns being filed.
• Any Administrative Penalties have been paid in full.
The process of deregistration for companies is the same as for individuals. The difference is the criteria to apply for deregistration
The scenarios that require deregistration of tax groups are
Any taxable persons/companies must apply for deregistration if they fulfill any of the conditions laid down in the Decree Law and Executive Regulations and failure to apply within the timeframe specified will attract an administrative penalty as per Federal tax authorities' guidelines. If there are any occurrences to pay a penalty then you may seek the guidance of a tax expert for further procedures.
If you are looking for assistance in VAT deregistration our VAT experts can guide you in such matters. Farahat and co provide expert services of vat deregistration. Our experts can help you with the tax deregistration process. If you have any inquiries concerning vat deregistration contacts us
Read More : How to Deregister for Excise Tax in UAE.