VAT De-Registration In UAE
VAT De-registration Services in Dubai, UAE
VAT De-Registration is the process of canceling a business’s VAT registration with the UAE Federal Tax Authority (FTA). It is essential to ensure compliance with VAT regulations and can be initiated under specific circumstances.
Voluntary De-Registration
A registered business can apply for voluntary deregistration under these conditions:
- It has been registered for at least 12 months.
- It no longer supplies taxable goods or services.
- Its annual turnover falls below AED 187,500, even after supplying taxable goods.
- Anticipated taxable supplies or expenses in the next 30 days will not exceed the voluntary registration threshold.
- The business ceases operations permanently.
Mandatory De-Registration
The FTA may initiate mandatory deregistration if:
- The business’s revenue falls below AED 375,000.
- The business no longer supplies taxable goods or services.
Group De-Registration
If a group of companies no longer meets the requirements for group status, is financially disassociated, or poses a risk of tax evasion, the FTA may approve the cancellation of VAT registration for the group.
VAT De-Registration Process In UAE
VAT De-Registration in UAE is an online procedure conducted through the FTA portal. However, businesses that cease operations must obtain a company liquidation letter from government authorities to apply for deregistration.
Once the De-Registration application is submitted to the FTA, it undergoes scrutiny. If the reasons are valid, and conditions are met, the VAT number is canceled. Otherwise, the application may be rejected.
It is crucial to note that the UAE tax system relies on voluntary compliance by taxable persons. Therefore, businesses can choose to apply for deregistration voluntarily or mandatorily, depending on their circumstances.
Situations Leading to Disapproval of De-Registration
The FTA may not approve De-Registration if:
- The application is not submitted within 20 business days.
- There are outstanding tax payments and administrative penalties.
- Required tax returns for the registration period have not been filed.
- Failure to submit the deregistration application on time may result in administrative penalties.
How to Submit a De-Registration Form
To apply for VAT De-Registration in the UAE, follow these steps:
- Ensure that you meet the criteria for de-registration.
Log in to your VAT account on the FTA Portal. - Fill out the VAT de-registration form with details and reasons.
Receive an SMS confirmation upon submission. - Submit the form electronically.
- The application status will be “Pre-Approved” after successful submission. It will be “Approved” only when all liabilities are cleared.
How IBR GROUP Assists in the De-Register Process
IBR GROUP offers expert VAT de-registration services in Dubai, ensuring compliance with UAE VAT laws. They analyze each aspect of the business and provide guidance on the de-registration process, making it seamless. In addition to VAT services, IBR GROUP offers a wide range of business services, including CFO services, auditing, accounting, and due diligence.
For queries regarding VAT de-registration or other business matters, IBR GROUP provides one-hour free consultation to address uncertainties and provide support.
In conclusion, VAT de-registration in Dubai, UAE, is a critical process that businesses should navigate carefully, ensuring compliance with applicable laws and regulations. IBR Group’s expertise can facilitate this process and provide valuable guidance to businesses seeking de-registration.