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How to Deregister Vat in UAE?

20/10/2019

The companies with a yearly turnover of more than AED 375,000 are mandatory to get themselves registered for VAT and submit the tax returns to the FTA. After more than a year of the UAE VAT implementation, it’s now time to determine whether your firm needs to deregister from VAT or continue being registered with the FTA and keep filing your VAT returns. That is as long as your business is no longer operating in the UAE or not obtaining the mandatory turnover limit over the year, then the business can apply for deregistration with FTA.

A VAT-registered individual or companies in the UAE can apply to de-register if they encounter any of the following conditions:

  • The registered company or individual no longer creates taxable supplies.
  • The value of their taxable supplies did not surpass 187,500 AED for 13 consecutive months after registering for VAT.
  • The value of taxable supplies of business or individual is less than the mandatory threshold of 375,000 AED for 12 months.

For taxable businesses and individuals, VAT deregistration is as vital as it is to register for a VAT. They must know the rules and process for VAT cancellation in UAE, penalties will be compulsory upon failure to file an application within the timeframe mentioned in the tax law.

For deregistering, you must first login with the credentials to the FTA Portal, then click on the deregister button. While deregistering for VAT, full details along with the effective date and therefore the reasons for the deregistering must be submitted. All the specified supporting documents should be submitted on the web portal. It’s essential that the e-mail address of the authorized signatory is updated within the portal and read all the necessary declarations and confirmed at the time of deregistration.

Once deregistration has been submitted, the FTA could either approve or reject the application and therefore authorized signatory or registrant is notified consequently. If the date of submission of the deregister request is more than twenty business days from the date the taxable person and business is needed and prone to de-register then a penalty of 10000 AED is to be paid by the taxable person because of the late fee for the deregistration.

When a business gets themselves deregistered for VAT, each one the outstanding liabilities must be settled. The business will check amount to be paid underneath the My Payment tab and pay all the outstanding amount to FTA. If the FTA is prone to pay the refund to the business at the time of deregistration, and therefore the request for deregistration is approved by the FTA, the business has the right to initiate the VAT refund method on the e-services portal.

ARC Associates is one of the leading VAT deregistration servicers in the UAE help companies in the timely fulfilment of the de-registration formalities in order so that the hefty fine may be avoided. If you are looking for someone to assist you for deregistration of VAT in the UAE, then you can undoubtedly contact ARC Associates for the accounting or tax solutions for your business.