VAT Deregistration in UAE

VAT Deregistration in UAE

VAT Deregistration in UAE is an online process. Businesses and individuals who are registered under Federal Tax Authority (FTA) can de-register from VAT in two situations:
1. If their turnover did not exceed AED 187,500 in the 12 months after registering with the FTA, they must apply for the VAT Deregistration.
2. If the business stops making taxable supplies then they have to apply for VAT deregistration.
If a tax registrant applied for Voluntary registration on January 1, 2018 and after 12 months (on December 31, 2018) if the business has not made taxable supplies equals to AED 187,500, the business shall analyze and evaluate if it’s taxable supplies will exceed within the voluntary threshold (AED 187,500) in the next 30 days (ending January 30, 2019) then they can apply for VAT Deregistration in the next 20 days.

How to apply for VAT Deregistration?

VAT Deregistration is an online procedure and it can be easily accessible through FTA portal.
The businesses which are closed must have company liquidation letter from the authorities in order to apply for VAT Deregistration.
The businesses which are making taxable supplies in the last 12 months since the registration are below the threshold (AED 187,500) then they must have financial statement (signed and stamped) for the last 12 months showing that the business is not able to make taxable supplies above the threshold.
VAT Deregistration must be applied within the 20 days of the above-mentioned situations.
If the businesses or individuals do not apply for VAT Deregistration within the advised time as per the FTA law, then they will get a penalty and after paying the fines and penalties then the authorities will approve their VAT De-Registration.

Procedure of VAT Deregistration

First step is to Login to your Federal Tax Authority (FTA) online portal. On the home page, there will be an option of ‘De-Registration’. There will be a VAT Deregistration form, fill the form with the correct information and send it to the authorities in order to review and approve the VAT Deregistration. After applying for the VAT Deregistration, FTA will review the application and if they confirm the VAT De-registration the status of VAT De-Registration will be changed to ‘Pre-Approved’. After that the businesses have to submit final VAT Return Filing, after the last VAT Return filing the businesses must clear all the outstanding liabilities in order to complete the VAT Deregistration process.
OTC are registered Tax Agents by FTA and will assist you by providing VAT Deregistration services in UAE. OTC will help your business to grow by avoiding any fines and penalties through providing the following services:

• VAT Accounting
• VAT Return Filing
• VAT Services
• VAT Consultancy
• VAT Training
• Tax Agent Services
• Tax Audit Services