VAT de-registration, also known as cancelling VAT registration, happens when a business wants to stop being registered for VAT with the UAE Federal Tax Authority. The FTA will only approve this if the reason is allowed by the law and the rules are followed. In the UAE, a business can cancel its VAT registration if it makes less than AED 187,000 in the first 12 months after registering or if it stops selling taxable goods or services. Mubarak Al Ketbi helps businesses with this process.
FAQ
Frequently Asked Questions on VAT Deregistration in UAE
Are there any penalties faced in case of delayed de-registration?
Yes, in the case of delayed compulsory de-registration, a penalty of AED 10,000 will be applicable. The application for de-registration must be submitted within a timeframe of 20 business days from the date the business becomes eligible.
Can we remove or deregister one company from a tax group?
Yes, a company can be removed from a tax group. The representative member of the tax group is required to notify the authority within 20 days from the date the member becomes ineligible to remain in the group.
I do not have sales for the last 12 months and I did not file a single tax return during this period, can I de-register?
Yes, you may apply for VAT de-registration in such cases. However, the Federal Tax Authority (FTA) will approve the request only after all pending tax liabilities and administrative penalties have been settled in full.
How to cancel VAT registration in UAE?
To cancel your VAT registration, log in to your FTA dashboard and select the ‘De-Register’ option. You will need to enter the reason for de-registration and the effective date from which you want the de-registration to apply. Additional supporting information may be requested, and the FTA will provide notification on the outcome of the application.
If my last 12 months turnover is less than the mandatory threshold, can I de-register?
Yes, if your turnover during the last 12 months is below the mandatory registration threshold, you are eligible to apply for tax de-registration.
Can I de-register my TRN after 6 months of registration, if it was a voluntary registration?
No, in the case of voluntary VAT registration, you must wait until 12 consecutive months have passed before applying for tax de-registration.