VAT deregistration in UAE The application process of deregistering for VAT in UAE
VAT deregistration in UAE is the process of removing a business from the VAT register. This means that the business will no longer be required to charge VAT on its supplies or reclaim VAT on its acquisitions.
There are a number of reasons for deregistering for VAT in UAE, such as:
- The business’s annual taxable turnover falls below the VAT registration threshold.
- The business ceases to trade.
- The business merges with or is acquired by another business.
- The business changes its legal structure.
These were the reasons for deregistering for VAT in UAE. The process of deregistering for VAT in UAE is relatively straightforward. However, there are a number of steps that businesses need to take in order to deregister correctly. These steps include:
- Submitting a deregistration application to the Federal Tax Authority (FTA).
- Providing the FTA with the required documentation, such as a copy of the business’s latest VAT return.
- Paying any outstanding VAT liabilities.
The following businesses in the UAE must de-register for VAT:
- Businesses whose annual taxable turnover falls below the VAT registration threshold.
- Businesses that cease to trade.
- Businesses that merge with or are acquired by another business.
- Businesses that change their legal structure.
In addition to these businesses, the FTA may also require other businesses to de-register for VAT, such as businesses that are not complying with the VAT laws and regulations.
Businesses must submit a deregistration application to the FTA within 20 business days from the date that the event that requires them to deregister occurs. For example, if a business’s annual taxable turnover falls below the VAT deregistration in UAE threshold, the business must submit a deregistration application within 20 business days from the end of the month in which the turnover falls below the threshold.
The FTA will then review the deregistration application and may request additional information from the business. Once the FTA has approved the deregistration application, the business will be removed from the VAT register and will no longer be required to charge or reclaim VAT.
How to deregister for VAT in UAE
To respond about How to deregister for VAT in UAE, businesses can apply for VAT deregistration in UAE through the FTA’s online portal.
The application process of deregistering for VAT in UAE
- Log in to the FTA’s online portal.
- Click on the “VAT Registration” tab.
- Click on the “Deregister” button.
- Complete the deregistration application form.
- Attach the required documentation.
- Submit the application.
Documentation required for deregistering for VAT in UAE
- A copy of the business’s latest VAT return.
- A letter from the business’s authorized signatory confirming that the business is no longer required to register for VAT.
The Documentation required for deregistering for VAT in UAE must also include a copy of its financial statements for the previous year.
Questions and answers about VAT deregistration in UAE:
Q: What are the penalties for VAT deregistration in UAE?
A: Businesses that do not deregister for VAT when they are required to do so may be subject to penalties.
It is important to note that the penalties for not deregistering for VAT are severe, and businesses should take steps to ensure that they are deregistered correctly.
Q: What happens if I deregister for VAT and then my annual taxable turnover goes back above the registration threshold?
A: If your annual taxable turnover goes back above the registration threshold after you have deregistered for VAT, you will need to re-register for VAT. You will need to do this within 20 business days from the date that your turnover goes above the threshold.
When you re-register for VAT, you will need to provide the FTA with the required documentation, such as a copy of your latest VAT return. You will also need to pay any outstanding VAT liabilities.
Q: What if I have any outstanding VAT liabilities when I deregister for VAT?
A: If you have any outstanding VAT liabilities when you deregister for VAT, you will need to pay these before you can be deregistered. The FTA will not deregister your business if you have any outstanding liabilities.
You can pay your outstanding VAT liabilities through the FTA’s online portal or by visiting a local FTA office.
The application process of deregistering for VAT in UAE
Q: What are the different types of VAT deregistration in UAE?
A: There are two main types of VAT deregistration in UAE:
- Voluntary deregistration: This is when a business chooses to deregister for VAT even though it is not required to do so. This may be done if the business is no longer making taxable supplies or if it is merging with or being acquired by another business.
- Compulsory deregistration: This is when a business is required to deregister for VAT by the tax authority. This may be done if the business is no longer meeting the registration criteria or if it is not complying with the VAT laws and regulations.
The process of deregistering for VAT in UAE will vary depending on the type of deregistration. However, in general, businesses will need to submit a deregistration application to the tax authority and provide the required documentation.
The application process of deregistering for VAT in UAE
If you have any questions about how to deregister for VAT in UAE, you can contact Ahmed Mahfoudh Chartered Accountants & Auditors. We are a leading tax consultancy firm in the UAE with years of experience. We have a team of experienced professionals who can help you understand the VAT deregistration in UAE and ensure that you are deregistered correctly.
The application process of deregistering for VAT in UAE
In addition to VAT deregistration in UAE, Ahmed Mahfoudh Chartered Accountants & Auditors also offer a wide range of other services, including:
- Accounting and auditing
- Tax planning and advice
- Business advisory services
You can contact Ahmed Mahfoudh Chartered Accountants & Auditors by phone, email, or through our website. We are always happy to help.