VAT De-registration in UAE
Majority of businesses in the UAE that meet the criteria for VAT registration have already completed the registration process. Once registered, compliance with the required rules and processes under VAT becomes essential. This includes issuing invoices in the specified format, filing returns on time, and ensuring the timely payment of taxes.
Understanding VAT De-registration
The VAT Law in the UAE provides registered taxable persons with the option to cancel their VAT registration, a process known as VAT de-registration. This involves the de-activation of the registration and the VAT number associated with the taxable person. De-registration can be initiated by a person registered under VAT or executed by the Federal Tax Authority (FTA) if they find that a person meets the conditions for de-registration.
Eligibility for VAT De-registration
Voluntary De-registration:
A registered person can apply for voluntary de-registration in two cases:
The person ceases making taxable supplies and does not anticipate any over the next 12-month period.
Taxable supplies or taxable expenses incurred over 12 consecutive months fall below the voluntary registration threshold (AED 187,500), and the person does not expect to cross this threshold in the next 30 days.
Note: Voluntarily registered persons cannot apply for de-registration within 12 months following the date of registration.
Mandatory De-registration by FTA
The FTA can cancel a person's registration if it is found that the registrant satisfies the conditions for de-registration, leading to mandatory de-registration.
This option is a welcome relief for businesses that initially registered under VAT but no longer engage in activities requiring registration. They can apply for tax de-registration upon meeting the applicable conditions.
VAT de-registration is a strategic option for businesses that have completed the registration process but no longer fulfil the criteria for ongoing registration. It streamlines the regulatory process and allows businesses to align their VAT obligations with their current activities.
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Whether you are considering voluntary de-registration or need assistance with the process, [Your Company Name] offers comprehensive VAT services to ensure compliance and efficiency in managing your tax obligations.
