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VAT Deregistration in UAE

Ensure a smooth VAT deregistration process with expert guidance by your side.

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What is VAT Deregistration?

VAT deregistration in the UAE is the official process through which a business cancels its VAT registration with the Federal Tax Authority (FTA). Once the deregistration is completed, the business is no longer obligated to charge VAT on its supplies or file VAT returns. However, before applying for VAT deregistration, businesses must ensure that they have settled all outstanding tax liabilities, including any due VAT payments and administrative penalties. The deregistration process can be done either voluntarily or mandatorily, depending on specific conditions outlined in the UAE VAT laws.

Why Businesses Need to Deregister for VAT

A business may deregister for VAT in the UAE if it no longer meets the required thresholds. Reasons include:

Declining Revenue

VAT deregistration is required if turnover falls below AED 375,000.

Business Closure

A company must deregister from VAT if it closes permanently.

Reduced Taxable Supplies

A business can deregister if it stops taxable activities or deals only in exempt supplies.

In these cases, VAT deregistration ensures that the business remains compliant with the UAE VAT laws and avoids unnecessary VAT obligations.

Types of VAT Deregistration

Voluntary VAT Deregistration

Businesses can apply for voluntary VAT deregistration in UAE if:

  • The business’s taxable supplies fall below the AED 187,500 threshold.
  • The business no longer supplies taxable goods or services.
  • The business is planning to close permanently.
  • The business expects its taxable supplies to remain under the voluntary registration threshold in the future.
Mandatory VAT Deregistration

VAT deregistration in UAE is mandatory if:

  • The business no longer meets the revenue threshold of AED 375,000.
  • The business ceases to make taxable supplies or its supplies are exempt.

If a business fails to de-register voluntarily, the FTA may initiate the process.

How VAT Deregistration Works in UAE

VAT Deregistration in UAE is a structured process through the FTA portal. Here's how it works:

Check Eligibility
Check eligibility

Businesses must meet criteria like annual revenue below AED 375,000 or cessation of taxable supplies to qualify for VAT deregistration.

Check Eligibility
Clear All Liabilities

Businesses must meet criteria like annual revenue below AED 375,000 or cessation of taxable supplies to qualify for VAT deregistration.

Check Eligibility
Submit Deregistration Form

Fill in the form on the FTA portal, specifying the reason for VAT deregistration.

Check Eligibility
Confirmation and Approval

Upon successful submission, the FTA will verify the application, and once approved, the VAT number will be canceled.

Situations Where VAT Deregistration May Be Rejected

VAT deregistration in the UAE helps simplify tax obligations, but applications may be rejected in certain cases. Businesses must be aware of these factors to avoid complications.

The Benefits of VAT Deregistration

Successfully completing the VAT deregistration process in UAE can offer several significant advantages for businesses

Reduced Administrative Burdens

Businesses no longer need to file periodic VAT returns, maintain detailed VAT records, or stay updated with tax compliance requirements, saving valuable time and resources.

Cost Savings

By deregistering, businesses can eliminate costs associated with VAT compliance, such as hiring tax professionals or maintaining specialized accounting systems.

Streamlined Operations

VAT deregistration in Dubai enables businesses to simplify their financial processes, focus on growth strategies, and allocate resources to more productive areas.

Focus Business Activities

With reduced tax-related obligations, businesses can prioritize their main operations without distractions from compliance responsibilities.

Elimination of Penalty Risks

Proper deregistration ensures businesses avoid penalties for non-compliance with VAT laws, particularly for those no longer meeting the registration thresholds.

Why Choose Young and Right for VAT Deregistration Services?

VAT deregistration in UAE can be complex, and ensuring that all legal requirements are met is crucial. At Young and Right, we specialize in simplifying this process for businesses of all sizes. Our team of experienced tax experts will guide you through every stage, from determining eligibility for VAT deregistration to completing the necessary VAT Deregistration Form.

We prioritize accuracy, compliance, and efficiency, helping businesses avoid common pitfalls. Our comprehensive VAT services are designed to save you time and stress, ensuring that your business remains fully compliant while you focus on your core operations. Whether you're dealing with voluntary or mandatory deregistration, Young and Right is your trusted partner for all VAT-related services in UAE.

Additionally, we provide a wide range of VAT-related services to ensure your business is always compliant, including VAT registration, VAT filing, VAT refund services, VAT impact analysis, and ongoing VAT compliance support. Trust Young and Right to make the VAT deregistration process seamless and hassle-free.

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