When a business needs to terminate its VAT registration with the UAE’s Federal Tax Authority (FTA), this termination is called VAT De-registration. Since FTA is the government entity looking over the matters of tax compliance, the VAT de-registration application also needs FTA’s approval for a company to legally deregister from UAE VAT.
A registrant can only apply for deregistration after the completion of 12 months of tax registration. In order to get FTA’s approval on voluntary deregistration a business must be making less than AED 187,500 turnover per annum, no longer supplying taxable goods or the company must be closed forever. However, to get FTA’s approval on mandatory deregistration, a business must have ceased to supply taxable goods along with the generation of a profit less than AED 375,000.
How to apply for the VAT De-registration?
- Log onto your business’s VAT account on FTA portal
- Hit the ‘Deregister’ button
- Fill in the application form by giving the necessary details and reasons for deregistration
- Hit the ‘Choose Files’ button to upload the documents relevant to the reason you chose for deregistration
- Check all the four declaration boxes along with confirming the authorized signatory
- Hit the ‘Submit’ button when done
FTA shall approve, reject or ask to resubmit the application which will be informed to the registrant. If the FTA approves the VAT deregistration application, it will generate a deregistration certificate, available on the dashboard for download.
With a certified team of VAT UAE experts, you can be assured that ACCBOOKS can review your business, analyze the befitting reasons valid for VAT deregistration, and assist you in applying for VAT deregistration ensuring a smooth process in compliance with UAE VAT laws.
FTA allows companies to apply for de-registration under the following circumstances
If the company stopped making taxable supplies; or is still making taxable supplies but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold or is still making taxable supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold.
Our team at ACCBOOKS will take complete responsibility to fulfil all your de-registration requirements and help you save from unnecessary penalties.