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VAT De-Registration UAE

Navigating the Process of VAT De-Registration UAE

VAT de-registration in the UAE

 VAT de-registration UAE is the process of cancelling the VAT registration in the UAE of a business. It is a process that must be undertaken by businesses that no longer meet the criteria for VAT registration. When a business is de-registered, it is removed from the Federal Tax Authority’s (FTA) database as a VAT-registered taxpayer.

When a business de-registers for VAT, it will no longer be required to pay or collect VAT on goods and services. The business must also de-register any branches or subsidiaries it has. The process of de-registration must be done in accordance with the regulations and procedures set by the FTA.

The process of VAT de-registration UAE should be managed by an authorised agent, such as a tax consultant or a tax expert, and we at Spectrum are well versed in the process of VAT de-registration UAE and strive to help you, with our excellent team of consultants and experts on the topic.  Our agents will help the business owner to complete the paperwork and ensure that the necessary documents are submitted to the FTA. The agent will also provide guidance to the business owner on the process of de-registration and any other questions they may have.

Spectrum experts help the business to set and fill in the application for VAT de-registration UAE which is then submitted to the FTA, which will then be reviewed. Rest assured, as our team will give its all for the approval, the business will be de-registered, and the  VAT de-registration UAE will take effect from the date of approval.

What is required for VAT De-registration UAE?

VAT de-registration is only required for businesses that no longer meet the criteria for VAT registration. The criteria for VAT de-registration UAE, include the following:

  • “The business must have an annual turnover of less than AED 375,000 but more than AED 187,500 for a voluntary de-registration and less than AED 187,500 for a mandatory de-registration”;
  • “The business must have been registered with the FTA for a period of 12 months or more” if the registration was done on Mandatory basis;
  • “The business must have made all the necessary tax payments till date”;
  • “The business must not have any outstanding debts with the FTA”;
  • The company must apply for the de-registration within 20 days when they are supposed to go for mandatory de-registration to avoid a penalty of AED 1,000 per month to a maximum amount of AED 10,000 as of today.

Businesses that no longer meet the criteria for VAT registration must de-register for VAT. This includes businesses that have ceased trading, businesses that have merged or been acquired, businesses that have had their VAT registration revoked, and businesses that are no longer required to be registered for VAT.

Timeframe for VAT De-registration UAE 

The company must apply for the de-registration within 20 days when they are supposed to go for mandatory de-registration to avoid a penalty of AED 1,000 per month to a maximum amount of AED 10,000 as of today.

The timeframe for VAT de-registration UAE depends on the type of business and the number of documents that need to be submitted. Generally, the process of de-registration can take up to three months. This includes the time taken to prepare the documents, submit the application to the FTA, and receive the approval.

It is important to note that the timeframe for de-registration may be longer if the application is incomplete or incorrect. The FTA may also request additional documents or information before the application can be approved.

Applying for VAT De-registration UAE with Spectrum 

Spectrum helps simplify the VAT de-registration UAE process for your business by helping out the business owner in submitting an application to the FTA. 

The application must include the following documents:

  • A completed application form.”
  • A declaration of Taxable supplies, expenses, out of scope transactions either from 2017 of from the date when the company was formed if it was formed after 2017”

Our expert panel support helps ensure that the business has all its documents in an above-mentioned manner and that all the documents are submitted to the FTA in the correct way with no flaws whatsoever.

The FTA may also require additional documents, such as financial documents and proof of identity. Once all the documents are submitted, the application will be reviewed, and the state of approval will be notified by Spectrum experts to the business. 

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At Spectrum, as an FTA approved Tax Agent, we have a team of experienced and knowledgeable tax consultants who can help you with the process of VAT de-registration UAE.

Our team will ensure that all the documents are prepared and submitted correctly to the FTA. We will also provide guidance and advice throughout the process to ensure that the de-registration is done in accordance with the regulations and procedures set by the FTA.

In addition to offering complete accounting and auditing services on VAT de-registration UAE, Spectrum Auditing and Accounting is a Federal Tax Agency, UAE, licenced tax agent with its headquarters in Dubai. We provide VAT Agency & Audit services throughout the UAE, including Dubai, Abu Dhabi, Sharjah, Ras Al Khaimah, Fujairah, Ajman, and Umm Al Quwain.

If you need help with the process of VAT de-registration UAE, contact us at +971 4 2699 329, and our team will be happy to assist you.

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FAQs

Yes, you can request to be deregistered. However, the approval will not be granted until all applicable taxes and administrative fines have been paid.

An indirect tax known as Value Added Tax (or VAT) is levied on the purchase of the majority of goods and services.

The Federal Tax Authority has provided Tax Registration Numbers, or TRNs, to businesses and individuals who have registered for VAT in the United Arab Emirates (FTA). The Federal Tax Authority will be able to distinguish you from the others using this 15-digit number.

A final VAT Return for the time frame up to and including the cancellation date must be submitted.

Taxpayers who have taxable supplies that are below the statutory threshold of AED 375,000 but above AED 187,500 may apply for voluntary deregistration.

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