Many small business owners in the UAE find VAT registration a mandatory obligation in the early stages. But over time, things change; maybe your business is no longer active; maybe your revenue has dropped. That’s where VAT deregistration comes in. This article explains what you need to know if you want to stop being VAT registered in the UAE.
VAT deregistration in the UAE becomes seamless with the assistance of our expert tax agents at Tax Gian.
When You Must Deregister for VAT in UAE
Deregistration isn’t always optional. In some cases, it’s required by law. You must apply to deregister for VAT in the UAE if:
- Your business has stopped making taxable supplies and does not plan to resume within the next 12 months.
- The total value of your taxable supplies in the past 12 months has fallen below AED 187,500, and you don’t expect it to rise above this level in the next 30 days.
These conditions apply whether you registered for VAT voluntarily or because you had to.
If you registered voluntarily, you must remain registered for at least 12 months before you can apply to deregister. You can’t apply earlier, even if your revenue drops.
Failing to deregister when you’re required to can result in penalties. So it’s important to keep track of your revenue and business activities. A VAT agent in Dubai can guide you on this matter.
Before You Apply for VAT Deregistration in UAE
First of all, make sure your tax affairs are in order before starting the application. This includes:
- Paying all outstanding VAT amounts
- Filing all pending tax returns
- Making sure all records are accurate
Even after deregistration, you’re still responsible for any VAT Return that was due before the deregistration date. So don’t skip this step. Take the time to double-check your past filings.
Step-by-Step: How to Deregister for VAT in UAE
Once you’re sure you meet the criteria and you’ve cleared your pending VAT tasks, you can begin the deregistration process. Here’s how:
- Log in to the FTA e-Services Portal
Head over to the Federal Tax Authority’s e-Services portal and log in using your credentials.
- Open Your VAT Profile
After logging in, go to your dashboard. Look for your VAT registration profile. There, you’ll find the option to apply for VAT deregistration.
- Start the Deregistration Application
Click on “VAT Deregistration” to open the application form. You have to then:
- Confirm the reason for deregistration
- Provide the relevant dates
- Enter final business figures if they request for it
Provide the requisite declarations from the date you are registered till date.
Try to be honest and precise, as wrong details could delay the process or you can face rejection as well and leading to penalties.
- Submit the Application
Once all sections are complete and you’ve reviewed your entries, submit the form online.
The FTA will review your application and may do one of the following:
- Approve it
- Reject it
- Ask for more information
Keep checking your e-Services dashboard to track the status of your request and in any case, FTA will send you email for the next course of action, so check your email.
After You Submit the Deregistration Form
If your de-registration is approved, you will still need to:
- Submit your final VAT return
- Settle any remaining dues
- Receive your final VAT De-Registration Letter.
Keep in mind this process is time consuming as before final de-registration, the FTA may ask many things, like your financial statements, bank statements, etc. and it may even take months.
Only after this will your VAT account be fully closed. Keep all related records safely stored, just in case you need them later.
Important Notes
- You cannot deregister without clearing all tax dues.
- You’re still legally responsible for VAT obligations from the period before deregistration.
- Apply as soon as you qualify to avoid late penalties.
- Even if your business stops, you’re not automatically deregistered. You have to apply.
- Taking assistance from VAT agents in the UAE simplifies the process.
Common Mistakes to Avoid
- Postponing the application even after achieving the required criteria
- Filing incomplete or inaccurate details in the form
- Disregarding final tax return responsibilities
- Believing that deregistration occurs automatically upon closure of business
Don’t show any negligence. The Federal tax authority keeps a watchful eye on deadlines and data accuracy.
How can Tax Gian Help?
Once you no longer need to register for VAT, don’t delay—go for deregistration as soon as possible. Tax Gian will help you deregister within no time so that you can go back and focus on other business goals. Our experts ensure that requirements are correctly fulfilled and the application is submitted accurately, so there are no delays or rejections. Hire our professional tax agents in Dubai, UAE today!
