How Long Does VAT Deregistration Take in the UAE?

VAT deregistration is an essential process for businesses that no longer meet the criteria for VAT registration in the UAE. However, many business owners are concerned about how long the deregistration process takes and what factors might cause delays. The Federal Tax Authority (FTA) has established a structured deregistration procedure, but the timeline for approval varies depending on several factors. This blog will outline the expected VAT deregistration timelines, discuss potential delays, and provide practical tips to help businesses speed up the process.

Understanding the VAT deregistration Process

VAT deregistration involves several stages, including: 1. Application Submission – Businesses must apply for deregistration through the FTA portal and provide the necessary supporting documents. 2. FTA Review and Assessment – The FTA verifies the application details, ensuring that all tax obligations have been met. 3. Final VAT Return Submission – The business must file its final VAT return, declare all taxable transactions, and settle any outstanding tax liabilities. 4. Clearance of Outstanding Dues – All unpaid VAT liabilities and penalties must be cleared before deregistration is approved. 5. FTA Approval and Confirmation – Once the FTA is satisfied that all conditions are met, it officially approves the deregistration request and removes the business’s VAT registration number.

How Long Does VAT deregistration Take?

The typical VAT deregistration process in the UAE takes between 20 to 45 business days, but the actual timeline may vary based on specific circumstances.

General Timeline for VAT deregistration

• Step 1: Application Submission → Takes 1-3 business days

• Step 2: FTA Review & Assessment → Takes 10-20 business days

• Step 3: Filing Final VAT Return & Tax Clearance → Takes 7-15 business days

• Step 4: FTA Final Approval & Confirmation → Takes 5-10 business days

If there are no errors, unpaid liabilities, or missing documents, VAT deregistration can be completed in approximately 3-6 weeks. However, if there are any compliance issues, the process may take longer.

Factors That Can Delay VAT deregistration

Several factors can slow down the VAT deregistration process, leading to extended approval times. The most common reasons for delays include:

1. Unsettled VAT Liabilities

The FTA will not approve deregistration if there are any unpaid VAT dues, penalties, or outstanding tax obligations. Solution:

• Before submitting the deregistration request, businesses should review their tax records and settle all outstanding payments.

• Conduct a VAT Compliance check to identify any potential liabilities that need to be cleared.

2. Incorrect or Missing Documentation

Submitting incomplete or inaccurate documents can result in the FTA rejecting or delaying the application. Solution:

• Ensure that all required documents, including financial statements, VAT returns, and business closure documents, are complete and accurate.

• Double-check the information provided before submission to avoid unnecessary delays.

3. Errors in Final VAT Return Submission

If the final VAT return is not filed correctly or contains errors, the deregistration request will not be processed. Solution:

• Carefully review the final VAT return and ensure that all taxable transactions are correctly reported.

• If unsure, seek assistance from VAT professionals to avoid filing mistakes.

4. Pending VAT refunds

Businesses eligible for VAT refunds should claim them before applying for deregistration, as the process may be delayed if the refund is still under review. Solution:

• File the VAT refund request before applying for deregistration.

• Wait for the refund approval before submitting the deregistration request.

5. Failure to Maintain VAT Records

The FTA requires businesses to keep VAT records for five years after deregistration. If records are missing or incomplete, the process may face delays. Solution:

• Ensure that all VAT invoices, financial statements, and tax returns are stored properly.

• Keep organized digital and physical copies of all VAT-related documents.

How to Speed Up the VAT deregistration Process

Businesses can streamline VAT deregistration by following these best practices:

1. Review and Clear Outstanding VAT Liabilities

• Ensure that all VAT returns are filed and all dues are paid before applying for deregistration.

• If any penalties apply, settle them immediately to avoid processing delays.

2. Prepare and Submit All Required Documents Accurately

• Ensure all supporting documents, such as financial statements, tax invoices, and deregistration justifications, are accurate and complete.

• Use a VAT specialist to verify documentation before submission.

3. Ensure Final VAT Return is Correctly Filed

• Submit the final VAT return before deregistration to ensure a smooth process.

• Double-check figures and tax calculations to avoid rejection.

4. Claim VAT refunds Before Deregistration

• Businesses with pending VAT refunds should file for reimbursement before deregistration to prevent unnecessary delays.

• If unsure, consult a VAT expert to handle the refund process efficiently.

5. Seek Professional VAT Advisory Services

• VAT consultants can help businesses navigate deregistration requirements and handle compliance issues efficiently.

• An expert VAT advisor can ensure timely approval and minimize delays.

How Young and Right Can Help

At Young and Right, we specialize in VAT deregistration services to help businesses navigate the process quickly and efficiently while ensuring full compliance with FTA regulations. Our team of VAT experts offers comprehensive support to speed up deregistration approval and avoid unnecessary delays.

1. VAT Compliance Review and Eligibility Assessment

• We assess whether your business qualifies for VAT deregistration under UAE tax laws.

• Our team reviews your tax obligations, ensuring that all compliance requirements are met.

2. Error-Free Documentation and Submission

• We prepare and verify all necessary deregistration documents, ensuring accuracy and completeness.

• Our experts handle the entire submission process on your behalf, minimizing errors and rejections.

3. Final VAT Return Filing and Tax Settlement Assistance

• We help businesses file their final VAT returns correctly and on time.

• Our team ensures that all outstanding VAT dues are settled, preventing approval delays.

4. VAT Refund Optimization Before Deregistration

• We check if your business is eligible for a VAT refund before deregistration.

• Our specialists submit refund claims promptly, ensuring you receive the maximum refund.

5. Ongoing Support and Post-Deregistration Compliance

• We provide guidance on record-keeping requirements to meet FTA regulations.

• Our team offers long-term VAT advisory services, ensuring smooth financial operations even after deregistration.

With Young and Right, businesses can ensure a hassle-free VAT deregistration process, avoiding fines and unnecessary delays while maintaining full compliance with UAE tax regulations.

Conclusion

VAT deregistration in the UAE typically takes 20 to 45 business days, but various factors can affect approval timelines. Unpaid tax liabilities, incorrect documentation, errors in VAT returns, and pending VAT refunds are common reasons for deregistration delays. To speed up the process, businesses should clear all outstanding tax dues, submit accurate documentation, and follow proper compliance procedures. Seeking professional VAT assistance can ensure that the process is handled smoothly and efficiently. At Young and Right, our VAT experts help businesses navigate deregistration complexities, ensuring a fast and error-free approval process. Whether you need assistance with final VAT returns, document submission, or refund claims, we are here to help. For expert VAT deregistration services in the UAE, trust Young and Right—your dedicated VAT Compliance partner.