VAT & Excise Service

VAT Deregistration

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Deregister for VAT in UAE

Generally, the termination or cancellation of VAT registration is called VAT Deregistration. As per the law defined under the regulations of FTA, following eligibility is must apply for VAT Deregistration in UAE.

1.  Mandatory VAT Deregistration

A Registrant shall apply to the Authority for Tax Deregistration in any of the following cases:

  • If he stops making Taxable Supplies.
  • If the value of the Taxable Supplies made over a period of (12) consecutive months is less than the Voluntary Registration Threshold (i.e. AED 187,500) and he expect that he will not reach voluntary registration limit in next 30 days.

2. Voluntary VAT Deregistration

A Registrant may apply to the Authority for Tax Deregistration if:-

  • If the value of his Taxable Supplies during the past (12) months was less than the Mandatory Registration Threshold (i.e. AED 375,000) and
  • 12 calendar months have been passed since the entity was registered with FTA under voluntary registration.
VAT Deregistration

HOW TO APPLY FOR VAT DEREGISTRATION ?

Deregistration application can be made through FTA online Portal. After login in, through vat deregistration form UAE you can provide with the details along with the reason for the VAT deregistration. Some information will already be populated into form from the earlier registration data.

The decision of FTA to approve the application for deregistration of VAT depends on the provided reason as well as the clearance of all:

a. Outstanding liability

b. Returns being filed

c. Any Administrative Penalties

DEREGISTRATION PENALTY

The penalty for failing to apply for a VAT deregistration with specific timeline i.e. within 20 business days, is AED. 10,000.