What Does VAT Deregistration in UAE Mean?
Every business that registers for VAT in the UAE receives a special TRN (Tax Registration Number) from the Federal Tax Authority (FTA). When a business cancels or deactivates this VAT identity, we call the process VAT deregistration. VAT deregistration can happen when a business chooses it voluntarily, or when FTA requires it because the business does not meet VAT registration conditions.
When Does a Business Become Eligible for VAT Deregistration?
A business becomes eligible for VAT deregistration when it stops making taxable supplies. For example, a company may close a branch or stop a product line that used to make taxable supplies. If the business’s taxable supplies fall below the mandatory registration threshold of AED 375,000 (but stay above the voluntary threshold of AED 187,500) for the last 12 months, it can apply for VAT deregistration voluntarily. If the business’s taxable supplies stay below the voluntary limit (AED 187,500) for 12 months and won’t rise in the next 30 days, VAT deregistration becomes mandatory.
FTA can also require deregistration if it suspects tax evasion or sees other issues that call for disciplinary action.
What Steps Are Involved in the VAT Deregistration Process?
If your business becomes eligible for VAT deregistration, you must act quickly. Here’s a simple step-by-step process:
- You must start the deregistration process within 20 business days after you meet the conditions.
- You must pay all tax dues and clear any administrative penalties before you apply.
- You must file any pending VAT returns before your application is processed.
- You should submit a VAT deregistration application to FTA with all supporting documents and reasons.
- FTA will review your application and check your documents.
- Once FTA approves, you’ll get an official notice of VAT deregistration within 10 days by email.
If you don’t follow these steps, you may face penalties for non-compliance.
Key Points to Remember for VAT Deregistration
- You must act within the 20-business-day period after you qualify.
- You must make sure no penalties or returns are pending before applying.
- You should keep all correspondence and notices from FTA as records.
- You can’t get your VAT deregistered if you have outstanding VAT or unfiled returns.
Following each step helps your business avoid penalties and makes the process smooth.
Why Should You Use a VAT Expert for Deregistration?
Many businesses find VAT rules hard to follow. Mistakes can cause problems with the FTA or lead to fines. A VAT expert knows all the rules and deadlines. With professional help, you’ll:
- Avoid costly errors in your application.
- Get support for document preparation and submission.
- Understand the right time to apply for deregistration.
- Stay updated with all the latest VAT regulations.
Working with experts saves your time and gives you peace of mind.
Mubarak Al Ketbi (MAK) Auditing: How We Can Help with VAT Deregistration
Let’s be honest—navigating VAT deregistration isn’t always a walk in the park! Mubarak Al Ketbi (MAK) Auditing has a local team that knows UAE’s VAT rules inside out. We help you:
- Check your eligibility for deregistration
- Prepare and file VAT returns and clear dues
- Collect and review all needed documents
- Submit the deregistration application on your behalf
- Answer FTA queries and handle correspondence
Our specialists create custom service packages based on your needs. We also help with VAT registration, implementation, code mapping, system integration, VAT invoice formatting, documentation, VAT return filing, file maintenance, health checks, VAT training, and all compliance procedures.
For More Information
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
