VAT Deregistration in UAE

UAE VAT Article 22 : Application for VAT De-registration

With the introduction of VAT in the UAE, it is compulsory for the businesses having turnover of taxable supplies of more than AED 375,000 to get themselves registered for VAT and submit the VAT returns on a timely basis. Along with the mandatory VAT registration, option of voluntary VAT registration is also available for the businesses that have a turnover on taxable supplies for more than AED 187,500.

All businWith the introduction of VAT in the UAE, it is compulsory for the businesses having turnover of taxable supplies of more than AED 375,000 to get themselves registered for VAT and submit the VAT returns on a timely basis. Along with the mandatory VAT registration, option of voluntary VAT registration is also available for the businesses that have a turnover on taxable supplies for more than AED 187,500.esses operating in the UAE need to have an active VAT registration with the FTA to continue with their businesses in the UAE. As business is very much unpredictable, it is quite ascertain that the turnover on the taxable supplies of the businesses will fluctuate and might also fall below the required threshold of AED 375,000 or AED 187,500 during the previous 12 months. In such cases, it becomes necessary for the businesses to apply for VAT deregistration with the FTA within 20 days of the occurrence of lower turnover than the required limit.

Along with threshold limit on the turnover, if a business ceases to exist in the UAE, you need to apply for VAT deregistration on the portal of FTA along with the company liquidation documents. The approval of VAT deregistration in the hands of the FTA and a business will only be deregistered for VAT if all conditions are fulfilled as required by the FTA.

Below are the cases when the FTA would disapprove the VAT deregistration:

• If the application for VAT deregistration is not submitted within 20 days
• If the business has any outstanding VAT liabilities and it has not been settled yet
• All the required VAT returns have not been filed during the previous years.

If businesses that are required to opt for VAT deregistration fail to submit the application for VAT deregistration within the 20 days, they shall be levied with a fine of AED 10,000. In order to avoid any fees and extra penalties by the businesses, it is necessary that the VAT deregistration is filed on time.

Reyson being the top VAT consultants in the UAE can help your business with the process of VAT deregistration.

The process of VAT deregistration is through the online portal of FTA. The steps for VAT deregistration are as follows:

• Login into the FTA portal, the option of Deregister is available. Click on deregister to start the form for VAT deregistration.
• All required details along with the documents are to be submitted in the form. The preferred date for VAT deregistration also needs to be included in the form.
• In the final step, all the details and documents can be reviewed before submitting them for FTA’s review and approval.

After all details are submitted, FTA will either approve or disapprove the application for VAT deregistration. Reyson are VAT consultants in the UAE and will assist in the process of VAT deregistration.