VAT Deregistration
Our VAT deregistration services assist eligible businesses in canceling their VAT registration with the Federal Tax Authority. Also known as VAT cancellation or termination, this process is necessary when a business no longer requires VAT registration. VAT deregistration is conducted online, ensuring a smooth and efficient process.
Here’s a summary of the key aspects related to VAT deregistration according to the Federal Tax Authority (FTA) guidelines
Types of VAT Deregistration
There are two types of VAT deregistration services. Companies will choose the appropriate category based on their specific reasons for deregistration. Following are the VAT deregistration categories:
- Mandatory VAT Deregistration
- Voluntary VAT Deregistration
Mandatory VAT Deregistration
A taxable person must apply for VAT deregistration within 30 days if any of the following conditions apply:
- If the business, no longer carries out any economic activities.
- If the business has ceased making taxable supplies.
- If they are no longer considered a legal entity (e.g., the company has been closed).
Voluntary VAT Deregistration
A taxpayer may choose to apply for VAT deregistration under the following circumstances:
- If its annual turnover remains below AED 187,500, even after making taxable supplies.
- If the company has permanently closed.
If a business in the UAE doesn’t apply for VAT de-registration within 20 business days after becoming eligible, they will face a penalty of AED 10,000. It’s important for businesses to adhere to these timelines to avoid unnecessary fines and complications.