Tax De-registration means de-activation of the registration and the Value Added Tax (VAT) number of the taxable person. Tax de-registration can be applied for by a person registered under VAT or done by the Federal Tax Authority (FTA) on finding that a person meets the conditions for de-registration.
De – registration conditions
A VAT-registered person in the UAE can apply to de-register if they meet any of the following conditions:
1)The registered person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period OR
2) The value of their taxable supplies is less than the voluntary registration threshold of 187,500 AED over a period of 12 consecutive months.
·The value of their taxable supplies is less than the mandatory threshold of 375,000 AED over a period of 12 months.
Note: A person who registers for VAT voluntarily must stay registered for at least 12 months before applying to de-register.
Time period for submission of de-registration application:
The application for VAT deregistration must be made in electronic form as prescribed by the Authority and within “20 business days” from when the conditions for de-registration were met.
Note: If the date of submission of this de-registration form is more than “20 business days” from the date the Taxable Person is required to de-register then you will be subject to a late de-registration penalty of AED 10,000.
When De-registration will come into effect:
From the last day of the period in which the conditions for deregistration are met
From the date requested by the registered person or the date the request is made when no preferred date is mentioned
In addition, a registered person cannot be de-registered if has not paid any outstanding VAT penalties and VAT liability in full and submitted all relevant VAT returns
The Authority may refuse the application for de-registration where it is in disagreement with the applicant. The Authority will issue a formal notice to the applicant with a date from which de-registration takes effect, within “10 business days” of making a decision.
For VAT registration related information you can visit our VAT page
For other VAT related information you can directly check FTA Website