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VAT Deregistration

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What is VAT Deregistration?

VAT de-registration is simply the procedure of terminating VAT registration. It implies de-activation of the registration and the VAT (Value Added Tax) number of the taxable person. VAT deregistration can be applied for by an individual registered under VAT or done by the Federal Tax Authority on finding that a person meets the conditions for de-registration.

Who must de-register for UAE VAT

A business or an individual registered under VAT can only apply for VAT Deregistration in the following circumstances

  • If the business or an individual stops making taxable supplies and doesn't expect to make any taxable supplies over the next 12-month period then they must apply for VAT Deregistration.
  • If the business or an individual is still making taxable supplies however the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold (AED 187,500) then they should apply for VAT Deregistration.
  • If the business or a person is still making taxable supplies however the value in the past 12 months was less than the Mandatory Registration Threshold (AED 375,000) and 12 months have passed since the date of registration if you were registered voluntarily then you may apply for VAT De-Registration

VAT Deregistration Penalty

The consequence for neglecting to apply for a mandatory de-registration of VAT within the predefined timeframe i.e. within 20 business days, from the occurrence of the event causing the taxable organization to get qualified for tax deregistration, is AED 10,000.

How to Cancel Vat Registration In UAE?

At the point when an element satisfies the criteria to de register for VAT in UAE, the can do as such through signing into their VAT Account on FTA Portal. After login in, through VAT deregistration structure UAE you can provide the subtleties alongside the purpose behind the VAT deregistration. Some data will as of now be populated into structure from the earlier enlistment information. The choice of FTA to affirm the application for de registration of VAT depends upon the gave reason just as the freedom of all:

  • Outstanding Taxes against the element.
  • Returns being documented.
  • Any Administrative Penalties have been ponied up all required funds.
  • Late accommodation can be made yet the endorsement from Federal Tax Authority to de-register VAT will be on hold except if every one of the liabilities alongside the late accommodation punishment have been paid. Indeed, even with the legitimate reason, the endorsement from FTA will exhibit the status of the application as “Pre-Approved” and may be seen as complete when all of these liabilities are cleared.