VAT Deregistration

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VAT de-registration, also known as cancellation, is the process through which a business formally ends its VAT registration with the UAE Federal Tax Authority (FTA). This process is essential when a business no longer meets the criteria for VAT registration or ceases its taxable activities.

When to Consider VAT De-registration

1. Voluntary De-registration
A business can opt for voluntary de-registration if:

The business has been registered for at least 12 months.
It no longer supplies taxable goods or services.
Annual turnover is below AED 187,500.
Expected taxable supplies or expenses in the next 30 days will not exceed the threshold.
The business is permanently closed.

2. Mandatory De-registration
Required if:

Annual revenue falls below AED 375,000.
The business ceases to supply taxable goods or services.

VAT De-registration for Groups

A VAT group can be de-registered if:

It no longer meets group registration criteria.
The group members are no longer financially linked.
There is a risk of tax evasion.

VAT De-registration Process

1. Submit Deregistration Form

Log in to the FTA portal.
Complete the VAT deregistration form with relevant details and reasons.
Receive SMS confirmation for submission.
Submit the form electronically.

2. Application Review

The FTA will review and approve the application if all conditions are met.
If reasons are invalid or conditions unmet, the application may be rejected.

3. Completion

Upon approval, the FTA will cancel the VAT number.

Documents Required for VAT De-registration

Company liquidation letter (if applicable).
Completed deregistration form.
Evidence of settled taxes and penalties.
Proof of filed tax returns.

Common Reasons for De-registration Disapproval

Failure to submit the application within 20 business days.
Outstanding taxes or penalties.
Unfiled tax returns.

Penalties

AED 10,000 fine for late or incomplete deregistration applications.

How RFZ Accounting Can Help

RFZ Accounting provides comprehensive VAT deregistration services in UAE, including:

Detailed analysis of de-registration reasons.
Assistance with completing and submitting the deregistration form.
Ensuring compliance with all VAT regulations.
Offering a range of VAT-related services, including VAT training, registration, compliance, and impact assessment.

For expert assistance with VAT de-registration or other VAT-related queries, contact RFZ Accounting for a free one-hour consultation. Our team is here to streamline the process and ensure compliance with UAE VAT laws.

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