VAT Deregistration

VAT Deregistration Service in the UAE

The Federal Decree Law Number 8 of the United Arab Emirates (UAE) requires a registrant to apply for Tax De-registration if the following conditions are met:

• If he stops making Taxable Supplies.
• If the value of the Taxable Supplies which are made over a period of (12) consecutive months is less than the Voluntary VAT Registration Threshold and said Registrant does not anticipate that they’ll cross the Voluntary registration threshold during the coming 30-days.

The Registrant must apply to the Authority for VAT de-registration in accordance with the cases mentioned above, within (20) business days of the occurrence of any of them.

The Federal Tax Authority (FTA) shall accept a VAT Registrant’s application for Tax De-registration where the above two conditions are met.

VAT De-Registration for VAT in the UAE is an online process which is accessible in the Federal Tax Authority’s online portal. Before proceeding for VAT De- registration, the applicant should consider various aspects such as turnover requirements or discontinuation of business etc.

VAT Deregistration in the UAE

To proceed with VAT Deregistration please click here https://eservices.tax.gov.ae/en-us/login

Once the FTA confirms acceptance of your VAT de-registration application form, you will be notified of the pre-approval. The status of your de-registration in the dashboard will be changed to ‘Pre-Approved’.

You shall also be required to submit a final tax return which will be generated by the system in the “VAT returns” section. You will receive an email and an SMS notification informing you of the status of the application and requesting you to complete the payment of the outstanding liabilities.

Penalties against non-deregistering in the UAE

The UAE VAT Law is very specific about the penalties against non-deregistering a business falling under the above categories. As per the UAE VAT Law, AED 10,000 will be levied on companies that didn’t de-register upon falling in the above categories.

So, it is a necessity that every VAT registrant in the UAE shall mandatorily verify as to whether they will fall in the categories specified in UAE VAT Law to avoid any non-compliance penalties.