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VAT Deregistration

Deregistration of  VAT in UAE

Generally, the termination of VAT registration is called VAT Deregistration. However, in the UAE, De-registration of VAT is when a business cancels its VAT registration with the Federal Tax Authority (FTA). There could be various reasons, why a previously taxed business or an individual can opt for cancelling their registration for VAT in UAE. Such reasons are needed to fall under the conditions defined by the Law related to VAT. Unless the reasons are valid and the conditions are fulfilled, the FTA might disapprove the application to deregistration.

For taxable individuals and businesses, VAT deregistration process is as important as it is to register for a VAT. Businessmen must know the rules and process for VAT cancellation in UAEas administrative penalties will be imposed upon failure to file an application within the timeframe specified in the tax law.

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VAT Deregistration in Dubai

Eligibility for VAT Deregistration

As per the law defined under the regulations of FTA, the following eligibility is must apply for VAT Deregistration in UAE.

Mandatory Deregistering VAT:

Under the rules such an individual or a business which,

  • Stops dealing in taxable goods and services OR,
  • The taxable supplies or expenses in the previous 12 months and the future 30 days do not exceed the voluntary registration threshold (i.e. AED.187,500.)

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VAT Deregistration in UAE

How to Cancel Vat Registration In UAE?

De-registering for VAT is a simple process. It involves the following steps:

Step 1: Visit the FTA VAT portal and sign in.

Step 2: Click on the de-register button against the VAT registration on the dashboard

Step 3: The taxable person details are already filled in the VAT de-registration application

Step 4: Select your reason for VAT de-registration from the drop-down options

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VAT Deregistration in UAE

After Submission of Application

When the online form is completed after providing all the details and reasons, it is to be submitted electronically. The applicant deregistering for VAT will get SMS confirmation on their registered number for submission.

The FTA will analyze the application for the reasons provided along with the status of returns, and any pending penalties, or tax payments. If everything is according to the rules and regulations of FTA without any errors, the application will be approved and VAT Registration will be canceled.

The FTA will de-register VAT, effective from the ending date of the last tax period when the taxed entity became eligible for cancellation of VAT.

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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 for every month thereafter until it reaches a maximum penalty of 10,000 AED