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VAT De-Registration

Wise Consultancy simplifies the VAT de-registration process, ensuring compliance and efficiency for your business.

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VAT-Deregistration

What is VAT De-Registration?

VAT deregistration is necessary in the UAE when you cease dealing with taxable supplies and do not exceed the thresholds for voluntary or mandatory VAT registration.

Wise Consultancy is a leading provider of VAT deregistration services in the UAE. We assist businesses in deregistering for VAT when they no longer meet the eligibility criteria.

To determine your VAT payment obligations, our tax experts can help you assess your situation and clarify your status. If your annual turnover exceeds the threshold limit, you will need to continue with VAT registration.

There are various reasons a business might wish to apply for VAT deregistration in the UAE. However, if the reason does not align with the conditions set by VAT regulations, you may not qualify for deregistration. We assist you in evaluating whether your business meets the eligibility requirements for VAT deregistration.

Our VAT Deregistration Services

A taxable person can cancel their VAT registration in the UAE, resulting in the suspension of their Tax Registration Number (TRN). If you are VAT-registered with the FTA and meet the eligibility criteria for deregistration, we can assist you with the process. Be aware that delaying your VAT deregistration in the UAE may incur a penalty.

Eligibility conditions for UAE VAT deregistration

If you are a natural or legal person registered for VAT in the UAE, you may deregister if you meet the following conditions:

  1. If you cease making taxable supplies for which you were registered and do not expect to do so in the next 12 months, you must apply for VAT deregistration.
  2. If you are still making taxable supplies but the total value of your supplies and imports is below the voluntary registration threshold of AED 187,500, you should deregister from VAT.
  3. If you continue to make taxable supplies, but the value of your supplies and imports is below the mandatory threshold of AED 375,000, and you have completed 12 months of voluntary VAT registration, you can apply for VAT deregistration.

Once you meet any of these eligibility criteria, you must apply for VAT deregistration within 20 business days. Failing to do so within the specified timeframe may result in penalties from the FTA.

Procedure for VAT deregistration in UAE

VAT deregistration is a straightforward process that doesn’t take much time. First, you need to visit the FTA VAT portal and log into your VAT account. Once logged in, you’ll see the dashboard with a tab for VAT registration. Click on the deregister button to access the VAT deregistration application, which contains all relevant information about the taxable person.

A key section of the application is the reason for deregistration. You must choose the appropriate reason for your VAT deregistration in the UAE from the following options:

  • You have ceased business operations.
  • You are no longer making or importing taxable supplies.
  • Your taxable supplies are below the voluntary threshold.
  • You are making or importing taxable supplies above the voluntary threshold but below the mandatory threshold.
  • Any other applicable reason that meets the eligibility criteria.

After selecting the correct reason, you need to indicate the effective date of your eligibility for deregistration. Then, upload all necessary supporting documents for your VAT deregistration application. Be sure to review all documents and their contents, confirm their accuracy via the declaration form, and submit the application to the FTA.

Impact of VAT De-Registration on Business Operations

Cash Flow Management

No longer charging VAT may reduce revenue; adjustments to cash flow forecasts are necessary.

Cost Structure Changes

Increased operational costs due to the inability to reclaim input VAT, potentially lowering profit margins.

Business Reputation

De-registration can raise concerns about financial stability; clear communication is essential to maintain stakeholder confidence.

FAQS

If we stop our operations, should we deregister from VAT?

If you cease making or importing the taxable supplies for which you were VAT-registered in the UAE, you are required to proceed with VAT deregistration. During this process, you must provide a company liquidation letter from the government, along with detailed financial records to the FTA.

What are the reasons the FTA might reject a VAT deregistration application?

If the FTA does not find the reasons for deregistration valid or if the business does not meet the necessary requirements, the application will be rejected.

Is there anything we need to manage after the VAT deregistration application has been pre-approved and reviewed?

After the FTA pre-approves your VAT deregistration, you are required to submit a VAT return. The FTA will then change the status to "under review," and you’ll need to submit another VAT return. Following this, the FTA will proceed to cancel your VAT registration. Once you are deregistered from VAT, it's important to retain your VAT records and keep your bank account active. These records are crucial for any future VAT audits, and you will need the bank account to receive any VAT refunds that may arise from your return.

If You Are Interested?

Contact us today for a consultation, and let’s get your business up and running in just a few days. Together, we can turn your vision into reality!