Procedure- VAT Deregistration
The VAT Deregistration procedure is an online process in the UAE, which needs to be done through the FTA portal. However, the businesses that stop functioning need to get a company liquidation letter from the Government to apply for the VAT Deregistration. GreenLine offers seamless VAT Deregistration services in the UAE to help companies cancel their VAT services.
In the latest issuance, the FTA announced that companies can opt for Deregistration from the VAT primarily on the basis of certain situations as per the Federal Decree-Law no. 8 of 2017.
VAT Deregistration in UAE is a process that allows a business to withdraw from paying taxes either voluntarily or mandatorily. As soon as the application for the VAT Deregistration is submitted to the FTA; it will review the application first. If it meets the terms of the law, then they will cancel the VAT number of the company. However, if the reasons are not valid and the conditions are incomplete, the FTA may reject the Deregistration application.
According to the FTA, the UAE Tax System is primarily based totally on voluntary compliance by Taxable People, whether it is regarding Registration, Filing Tax Returns, Deregistration, or payment of due tax.
The step-by-step process for VAT Deregistration in UAE:
- Prepare a Deregistration application with supporting documents, including evidence of the cessation of taxable activities and financial statements.
- Submit the application through the FTA's online portal and pay any outstanding VAT dues.
- Await confirmation of VAT Deregistration and update records of your business accordingly.
The VAT Deregistration application should include the following information:
- Deregistration Reason
- Last VAT Return Details
- Date of the Last Supply
- Date of the VAT Return (expected)
Types of VAT Deregistration in the UAE
Voluntary Deregistration
A Registrant can't follow for VAT Deregistration within 1 year of the date of Tax Registration.
A company can follow the Voluntary Deregistration procedure-
- After one year of the Tax Registration date
- It does not supply the taxable goods
- Its turnover is below AED 187,500 p.a.
- The total cost of the taxable materials or expenses concerned to tax in the next 30-days duration will not exceed the voluntary registration threshold
- Company is closed forever
Mandatory Deregistration
A company can follow the Mandatory Deregistration procedure-
- The company is not making AED 375,000 in revenue
- The company doesn't deliver any taxable supplies
Who needs to Deregister for VAT?
Businesses can deregister for VAT if they meet one of the following situations:
- The trading is closed or the company is sold
- The business no longer meets the obligatory registration threshold
- The business activities are no longer vital to register for VAT
- The business is a VAT group part and wants to leave the group
To ensure a smooth and problem-free VAT Deregistration procedure, it's advisable to get expert assistance from a VAT Deregistration provider at GreenLine Attestation. They can help you prepare the application, and coordinate with the tax authorities on your behalf, ensuring compliance with all UAE FTA's legal requirements. Contact us today for a swift and compliant VAT Deregistration in the UAE.
Consequences Of VAT Deregistration:
After the Vat Deregistration, businesses cannot charge VAT on their goods and services or file VAT Returns. Any unused input tax credit needs to be repaid to the FTA.
Any outstanding VAT needs to be clear.
From the date of Deregistration, the business must maintain all VAT records and documents for five years.
Our VAT Deregistration Services
- Easy Tax Codes
GreenLine has experts who can speak the tax language fluently, which means we can explore the confusing things and ensure smooth VAT Deregistration, without any unnecessary confusion.
- ERP System Integration
Your ERP system may sound like jargon, but actually, it is a tool that helps run your business. Our representative knows the way to make it work seamlessly with the whole VAT Deregistration procedure.
- Early Hassle Detection
Think about us as problem detectors without the crystal ball as we use innovative tools to identify potential problems before they become large obstacles. You can trust us to handle any challenges that could arise during your VAT Deregistration procedure.
- Data Security Measures
We handle your financial data with the utmost care; we employ strong encryption techniques to ensure the safety of your data and act like a high-tech lock to protect your sensitive information from illegal access.
