How to apply for VAT Deregistration in UAE?

VAT De-Registeration in UAE

In UAE, if a business wants to cancel its VAT registration with the federal department, they have to opt for VAT deregistration process. This is an online process and whether it is individuals or businesses, they should be in any one of the below situations to go for VAT Deregisteration in UAE.

Any business that ceased to make the taxable supply.
If the business fails to earn or incurred expenses AED 187,500 in the first twelve months after registering themselves for VAT with the federal department.

Any business that didn’t earn or incurred expenses AED 187,500 in the first twelve months after VAT registration with FTA can analyze and check whether it is possible for them to make 187,500 in the next coming thirty days. This is a grace period and after that they will have twenty days to complete VAT registration.

Procedure for applying VAT Deregisteration in UAE

The companies that are closing down should upload their liquidation letter from authorities while the companies that didn’t make AED 187,500 should provide their financial statements to the FTA. The entire process can be done online only without any hassle.

Just go to the FTA Website and in the home page, click on the option- “De-registration.” Now you will get a deregistration form, fill that. Ensure that you are giving correct information to the authorities. Send it to them and they will review the application and verify your business.

Once the verification is done, the status of your application will convert to “pre-approved”. The next step is the business has to submit the final VAT return filing and clear all the outstanding liabilities and refundable. This way the process for VAT deregistration in UAE will be completed.

The VAT deregistration must be done in 20 days in any of the above-mentioned circumstances. The FTA will levy penalty on any business that fails to do so. The authorities will approve de-registration once their penalty is cleared.

This entire process may seem a little bit chaotic to a person who doesn’t have proper idea. This is the reason why you have to get in touch with a reliable VAT consultant in Dubai who will help with the entire deregistration process. This way the work will be done in time and there won’t be any mistakes either. The VAT Consultancy with good experience will handle the entire process while you can focus on any other work you have.