
VAT Deregistration
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 as per Federal Decree-Law No. (8) of 2017 on Value Added Article 22
1. If he stops making Taxable Supplies. (Liquidation)
2. If the value of the Taxable Supplies made over a period of (12) consecutive months did not exceed the voluntary registration threshold or but not exceeding the mandatory registration threshold after registering with the FTA, they must apply for the VAT Deregistration.
The final tax return is required to be submitted through the “VAT returns” section in the FTA portal and payment of all outstanding liabilities in the portal
The time limit: Once an FTA registered entity becomes eligible for VAT deregistration they have a time limit of only 20 business days from the event causing such eligibility. Failing to apply within the available time will cause financial loss of a penalty of AED 10,000 to be paid by the taxable person as the late fee for deregistration.
Required Documents for VAT Deregistration
1 In case of deregistering based on ceasing to make taxable supplies:
Proof of ceasing to make taxable supplies.
Turnover Declaration on the taxable person’s printed letterhead for the tax periods from the effective date of registration to date, signed and stamped by the authorized signatory.
2 In case of deregistering based on taxable supplies not exceeding the voluntary registration threshold or exceeding the voluntary registration threshold but not exceeding the mandatory registration threshold
Turnover Declaration on the taxable person’s printed letterhead for the tax periods from the effective date of registration to date, signed and stamped by the authorized signatory.
Declaration that the taxable person will not exceed the mandatory registration threshold within the next 30 days
Abstract Tax Consultant FTA APPROVED Tax experts will be more than willing to assist your businesses in the timely fulfillment of the de registration formalities so that the hefty fine could be avoided For more information on Tax Deregistration services, contact us today