All you need to know about VAT De-Registration in the UAE

The withdrawal of VAT registration is called VAT De-registration. However, in the UAE, the VAT deregistration is when a business cancels its VAT registration with the Federal Tax Authority (FTA).

There could be assorted reasons why a business would apply for VAT deregistration in UAE. However, such reasons are needed to fall under the conditions defined by the FTA laws related to VAT. Unless the reasons are valid and the conditions are fulfilled, the FTA might disapprove of the application to deregistration.

For taxable individuals and businesses, VAT deregistration in UAE is equally important as it is to register for a VAT. Businessmen must know the rules and processes for VAT cancellation in UAE, failing to which, the administrative penalties will be imposed upon.

A business can apply for the deregistration of VAT if the business, no longer deals with the goods/ services for which it was liable to pay taxes or if the business’s sales/ purchase invoices are less than the voluntary registration threshold. A company also must go under deregistration if the company is going through liquidation.

One must ensure that its due tax and administrative penalties have been paid and tax have been filed before applying for deregistration and make sure that the application must be sent within 20 days occurrence of either of the above 3 events.

If the deregistration application is approved, the tax registration will be canceled. A notification of successful deregistration will be sent to the registrant after 10 business days of the application being approved.

Note: The FTA needs to be informed about all the changes made to the business. From ownership to the location of the head office or even the name of the business or the account number. The FTA must be kept updated.

The registrant should apply for deregistration on the online FTA web portal.

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