VAT Deregistration
VAT deregistration in UAE allows a taxable person or a business to cancel their VAT registration and suspend their Tax Registration Number (TRN). FTA VAT Deregistration is an online process.
Only the businesses and individuals who are registered under Federal Tax Authority (FTA) can de-register from VAT. The late VAT Deregistration penalty will be AED 10,000.
Who must de-register for UAE VAT
A business or a person registered under VAT can only apply for VAT Deregistration in the following circumstances:
If the business or a person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period then they must apply for VAT Deregistration.
If the business or a person is still making taxable supplies but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold (AED 187,500) then they must apply for VAT Deregistration.
If the business or a person is still making taxable supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold (AED 375,000) and 12 months have passed since the date of registration if you were registered voluntarily then you may apply for VAT Deregistration.
Note that a person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration. Late VAT Deregistration fine will be AED 10,000.
Time Frame for VAT Deregistration
A registrant must apply for VAT deregistration within 20 business days from the occurrence of the above mentioned events. Registrants can easily apply for VAT deregistration by accessing their FTA portals.
IMPORTANT: Please note, if the date of submission of this de-registration form is more than 20 business days from the date the Taxable Person is required to de-register then you will be subject to a late de-registration penalty of AED 10,000.
Companies that are getting closed must have a company liquidation letter from the government authorities to apply for VAT Deregistration.