VAT De-registration Service
For businesses operating in the UAE, there is a requirement to apply for VAT de-registration in certain circumstances. In the United Arab Emirates, de-registering from VAT is a formal process that should be done through the Federal Tax Authority (FTA) when one no longer meets the requirement of VAT registration or has ceased operations.
When Should You De-register for VAT?
- Compulsory De-registration
A business should apply for VAT de-registration within 20 business days if:- The business no longer makes taxable supplies, that is, it ceases to trade or is no longer engaged in VAT-taxable activities.
- The taxable supplies made in the preceding 12 months are below the voluntary registration threshold of AED 187,500, and the business does not expect to exceed this threshold in the following 30 months.
- Voluntary De-registration
A business can voluntarily de-register for VAT if it has taxable supplies or costs in the past 12 months that are below the compulsory registration threshold of AED 375,000, but exceed the voluntary registration threshold of AED 187,500.
Important Points
- Deregistration Fine for Late Submission
If a business does not apply for de-registration within the stipulated time, the fine would be AED 10,000. - Record Keeping
Even after de-registration, companies must retain VAT accounts for a minimum of five years, as the FTA could request these records for auditing purposes. - VAT Liabilities
All VAT arrears must be cleared in full before de-registration is complete; this includes any VAT due on supplies made prior to de-registration.
What Primetax Can Do for You
Primetax advises companies on whether they are eligible for VAT de-registration and assists businesses from start to finish. Our services include the following:
- Eligibility check for de-registration.
- Submission of the de-registration application.
- Filing all VAT returns and arrears.
- Handling all communications with the FTA.
By de-registering with us, you can ensure compliance with UAE VAT regulations and avoid unwanted penalties. Contact us for more information!
