We do understand the complexities of VAT deregistration in the UAE. Our team of experienced professionals is dedicated to guiding you through the process seamlessly and efficiently.
VAT Deregistration
VAT deregistration is the process of cancelling your VAT registration with the Federal Tax Authority (FTA). It is typically applicable to businesses that have ceased operations or whose taxable supplies have fallen below the mandatory registration threshold.
You may be eligible for VAT deregistration if:
- Your business has ceased operations.
- Your taxable supplies have consistently fallen below the mandatory registration threshold of AED 375,000 for the past 12 months.
- You have voluntarily registered for VAT and your taxable supplies have consistently fallen below the voluntary registration threshold of AED 187,500 for the past 12 months.
The FTA typically takes up to 20 business days to process a deregistration application. However, the overall process, including documentation preparation and submission, can vary depending on the complexity of your case.
The required documents may include, but are not limited to, a deregistration form, a letter explaining the reason for deregistration, and supporting financial statements. Our team will guide you on the specific documents needed for your case.
Once your deregistration is approved, you will no longer be required to charge or remit VAT. However, it is essential to retain VAT records for a specified period as per FTA guidelines.
Yes, businesses that fail to deregister within the prescribed timeframe may be subject to penalties. It is crucial to initiate the deregistration process as soon as you become eligible to avoid potential penalties.
