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:
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Mandatory De-registration |
Voluntary De-registration |
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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.
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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.
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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:
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Mandatory deregistration |
From the last day of the period in which the conditions for deregistration are met |
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Voluntary deregistration |
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
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