VAT De-Registration in UAE

VAT De-Registration in UAE

If a company wants to revoke its VAT registration with the federal government in the United Arab Emirates, they must go through the VAT deregistration process. This is an online operation, and individuals or companies must be in one of the following circumstances to be eligible for VAT Deregistration in the UAE.

  • Any company that has stopped making taxable supplies.
  • If the company does not raise or spend AED 187,500 in the first twelve months after filing for VAT with the federal government, they will be fined.

Any company that did not receive or incur expenses of AED 187,500 in the first twelve months after registering for VAT with FTA will analyse and see if they can make that amount in the next thirty days. This is a grace period, and they will have twenty days to complete the VAT registration process after that.

Procedure for Applying for VAT Deregistration

In the UAE, the procedure for applying for VAT deregistration is as follows:

  • Companies that are shutting down should upload their authority’s liquidation letter, and those that did not make AED 187,500 should send their financial statements to the FTA. The whole procedure can be completed entirely online.
  • Simply go to the FTA website and click on the “De-registration” link on the home page. You will now be given a deregistration form to complete. Make sure you’re providing the authorities with accurate details. Send it to them, and they’ll look at it and check the company’s legitimacy.
  • The status of your application will change to “pre-approved” once the verification is completed. The company must then file the final VAT return and clear all pending liabilities and refundable amounts. In this way, the VAT deregistration process in the UAE will be completed.

In each of the above cases, the VAT deregistration must be completed within 20 days. Any company that fails to comply will be fined by the FTA. Once their penalty has been paid, the authorities can allow de-registration.

To someone who is unfamiliar with the operation, it can seem a little chaotic. This is why you need to contact a reputable VAT consultant in Dubai who can assist you with the entire deregistration process. This ensures that the work is completed on schedule and without errors. The VAT Consultancy with extensive experience will manage the entire operation, allowing you to concentrate on your other responsibilities.