VAT De-Registration

Business setup process
Standard for business
Auditing - People process technology
Auditing - People process technology

DE-REGISTRATION

This guide is to help you understand the key steps required for the Tax Group registration,

Amendment and de-registration processes.

Eligibility for VAT Deregistration

As per the law defined under the regulations of FTA, following eligibility is must apply for VAT Deregistration in UAE.

Mandatory Requirements for Deregistering VAT:

Under the rules such an individual or a business which,

  • Stops dealing in taxable goods and services OR,
  • LIQUIDATION Report, showing that there is No business for 1 year
  • Bank Statement (No transactions for the last 1 year)
  • Should VAT NIL Returns for 4 Quarters
  • The taxable supplies or expenses in the previous 12 months and the future 30 days do not exceed the voluntary registration threshold (i.e. AED.187,500.)

If a business or an individual, who was registered as tax payer with FTA, fulfils to these criteria, it must not delay applying for de registration of VAT to avoid any penalties.

The time limit:

Once an FTA registered entity becomes eligible for VAT deregistration under this criterion, they have a time limit of only 20 business days from the event causing such eligibility. Failing to apply within the available time will cause financial loss due to fines as a penalty for late application.

VAT Deregistration Penalty

The penalty for failing to apply for a mandatory de-registration of VAT within the specified timeframe i.e. within 20 business days, from the occurrence of the event causing the tax payer entity to get eligible for tax deregistration, is AED. 10,000.