VAT De-Registration
VAT De-registration could save you time and money, freeing up resources to focus on growing your business.
Overvuew VAT DE-REGISTRATION
The majority of businesses in the UAE that are eligible for Value Added Tax (VAT) registration have already completed the registration process. Once registered, a taxable entity must adhere to the necessary regulations and procedures related to VAT. This includes issuing invoices in the prescribed format, submitting timely returns, and paying taxes on time. According to the VAT Law, registered taxable individuals have the option to cancel their VAT registration. To learn about the situations that qualify for de-registration under VAT and the corresponding procedure, continue reading.
The majority of businesses in the UAE that are eligible for Value Added Tax (VAT) registration have already completed the registration process. Once registered, a taxable entity must adhere to the necessary regulations and procedures related to VAT. This includes issuing invoices in the prescribed format, submitting timely returns, and paying taxes on time. According to the VAT Law, registered taxable individuals have the option to cancel their VAT registration. To learn about the situations that qualify for de-registration under VAT and the corresponding procedure, continue reading.
Tax De-registration allows a registered individual who is liable to pay taxes to cancel their VAT registration, resulting in the deactivation of their registration and VAT number. The process can be initiated by the individual registered under VAT or by the FTA, who identifies individuals who meet the requirements for de-registration.
Other Important Aspects
What is the suitable way for an individual to request for VAT de-registration in the UAE?
If you are registered under VAT, there are two situations where you can apply for Tax De-registration.
Firstly, if you are no longer making any taxable supplies and don’t anticipate any in the next 12 months.
Secondly, if your taxable supplies or expenses incurred over a period of 12 consecutive months are below the voluntary registration threshold of AED 187,500 and you don’t expect to exceed this threshold in the next 30 days.
However, please note that those who have voluntarily registered under VAT cannot apply for de-registration within the first 12 months after the registration date. Ensure that you meet all necessary requirements before applying for Tax De-registration.
What are the circumstances under which the FTA in the UAE can cancel a registration?
The FTA has the authority to cancel an individual’s registration if they meet either of the two criteria for mandatory tax de-registration. This process is known as mandatory tax de-registration. In situations where a person has registered for VAT but is no longer making taxable supplies, VAT de-registration is a useful option. These individuals are not obligated to maintain their registration and can apply for tax de-registration by meeting the necessary requirements. This approach offers flexibility for individuals who no longer require VAT registration.
Choose the Perfect Plan
for different aspects of problem, client can get different offers, as mentioned below:
Individual DE-Registration
- 1 Single Registration for 1 firm/company
- Free CA Consultancy
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Group DE-Registration
- 1 Group Registration
- Up to 3 firm/companies
- Free Consultancy
