VAT Deregistration services in Dubai pave the way to claim your financial independance through our effective solutions
VAT Deregistration in UAE made smooth with expert team at ACL tax consultants to guide you through the steps, ensuring a seamless transition and maximizing your financial benefits.
What is VAT Deregistration in UAE?
When a company needs to terminate its VAT registration with the UAE Federal Tax Authority, it normally completes a VAT de-registration process, also known as cancellation or termination of VAT registration. Only once the termination grounds are legitimate and the prerequisites are met in accordance with the legislation, FTA in UAE accept the deregistration of VAT. If a company’s revenue after registering with the FTA does not reach AED 187,00 in the initial year after registration, or if it stops making taxable supplies, the company may de-register from VAT.
Voluntary VAT Deregistration
A business may proceed with the voluntary deregistration process:
- If 12 months have passed since the tax registration date.
- If the taxable items are no longer supplied by it.
- If, even after providing taxable items, its yearly turnover is less than AED 187,500.
- If the estimated total value of taxable purchases or tax-related costs for the upcoming 30-day period falls under the voluntary registration level.
- If the business is permanently shut down.
Mandatory VAT Deregistration
A business may proceed with the mandatory deregistration process:
- If the business stops generating AED 375,000 in sales.
- If the business provides no taxable goods.
Document Required For VAT Deregistration in UAE
- Cancellation of Trade License Document, Liquidation Notice, and Board Resolution
- Most Recent Financial Statement for the Business, which may include Trial Balance, Profit and Loss Statement (P&L), or Balance Sheet (Audited or Unaudited)
- Confirmation Letter from the Ministry of Labor verifying the total number of employees
- Original and Revised Sales Contracts or Licenses
- Amended Company Establishment Agreement
- Financial Turnover Template detailing taxable income and expenses from the date of initial registration
- Document confirming the cessation of business activities
- Official Letter and Undertaking acknowledging that no taxable supplies will be made in the next 30 days
- Business Itinerary Chart displaying suppliers, importers, and the countries where customers and suppliers are located
- Official Declaration on Company Letterhead, complete with date and company stamp, confirming compliance with VAT registration thresholds
- Signed and Sealed Official Letter attesting to the absence of business operations within the UAE
- Sample Invoices
- Attach an Official Letter from the Company, bearing the company stamp and signature, indicating that returns will be submitted using the TRN (Tax Registration Number) of the parent company
- Tax Registration Number (TRN) Certificate for the Head Office of the business
- Attach an Official Letter from the Company, stamped and including its website address, affirming that declarations will be filed using the TRN of the parent company.
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ACL provides expert assistance with UAE VAT deregistration as we guide you through the process, ensuring that all requirements are met and that you avoid any penalties. Contact us today to learn more about our VAT deregistration services and how we can help you streamline your business operations!
Frequently Asked Questions on VAT Deregistration
The duration of the VAT deregistration process can vary depending on the circumstances. It typically takes around 20-30 days for the UAE Federal Tax Authority (FTA) to process the application and complete the deregistration process.
Yes, failing to apply for VAT deregistration in a timely manner can result in penalties imposed by the FTA. It is important to initiate the deregistration process as soon as the eligibility criteria are met or when the business ceases operations.
Yes, businesses that deregister for VAT may be eligible to reclaim any input VAT remaining on their books. The reclaim process should be initiated within a specified timeframe, and the FTA will assess the claim based on their guidelines.
While it is not mandatory, seeking professional assistance from tax consultants or accountants can ensure a smooth and compliant VAT deregistration process. They can guide you through the documentation, assist with calculations, and provide expert advice tailored to your specific situation.
You are required to submit your VAT deregistration application to the FTA within 20 business days from the occurrence date of the event that necessitates your deregistration under Article 21 of the VAT Law.
Typically, the VAT Deregistration process comprises the following stages:
a) Apply a VAT Deregistration application through your online account, providing accurate reasons, the intended date for deregistration, and uploading all necessary supporting documents.
b) Submit your final VAT return as instructed by the FTA after reviewing your deregistration application.
c) Resolve any outstanding obligations with the FTA, including any pending penalty payments, or submit a refund application if your account shows a credit balance at the time of deregistration submission.
A ‘final return’ denotes the tax return filed for the last tax period during which you maintained your registration with the FTA as a taxpayer. This concluding tax period concludes on the FTA-approved effective date of de-registration. It is imperative to submit this final tax return and remit any outstanding tax liabilities within 28 days from the effective de-registration date, which corresponds to the termination of the final tax period. Failure to initiate the de-registration process with the FTA, file the final tax return, or settle any payable tax within the stipulated timeframe may result in penalties and potential delays in the de-registration procedure.
Yes, it is mandatory to submit all VAT returns by their respective deadlines until the deregistration application has been reviewed and the final return has been processed.
No, the EmaraTax account remains active even after deregistration. Only the VAT Registration status will be updated.
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