Ensure a smooth VAT deregistration process with expert guidance by your side.
HomeVAT ServicesVAT 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.
A business may deregister for VAT in the UAE if it no longer meets the required thresholds. Reasons include:
VAT deregistration is required if turnover falls below AED 375,000.
A company must deregister from VAT if it closes permanently.
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.
Businesses can apply for voluntary VAT deregistration in UAE if:
VAT deregistration in UAE is mandatory if:
If a business fails to de-register voluntarily, the FTA may initiate the process.
VAT Deregistration in UAE is a structured process through the FTA portal. Here's how it works:
Businesses must meet criteria like annual revenue below AED 375,000 or cessation of taxable supplies to qualify for VAT deregistration.
Businesses must meet criteria like annual revenue below AED 375,000 or cessation of taxable supplies to qualify for VAT deregistration.
Fill in the form on the FTA portal, specifying the reason for VAT deregistration.
Upon successful submission, the FTA will verify the application, and once approved, the VAT number will be canceled.
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.
Businesses must file all VAT returns before deregistration. Missing filings may lead to rejection, even if the business is inactive.
All outstanding VAT dues, fines, and penalties must be cleared before applying, or the request will be denied.
The VAT deregistration form must be submitted within 20 days. Delays result in rejection and possible penalties.
Successfully completing the VAT deregistration process in UAE can offer several significant advantages for businesses
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.
By deregistering, businesses can eliminate costs associated with VAT compliance, such as hiring tax professionals or maintaining specialized accounting systems.
VAT deregistration in Dubai enables businesses to simplify their financial processes, focus on growth strategies, and allocate resources to more productive areas.
With reduced tax-related obligations, businesses can prioritize their main operations without distractions from compliance responsibilities.
Proper deregistration ensures businesses avoid penalties for non-compliance with VAT laws, particularly for those no longer meeting the registration thresholds.
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.
Emily Johnson
“Young and Right has been the best choice for our business Their payroll and financial reporting services are accurate, timely, and hassle free. Highly recommended”
Michael Anderson
“Outsourcing our payroll and bookkeeping to Young and Right choices . Their team is professional, reliable, and ensures compliance with UAE regulations.”
Sarah Lee
“Young and Right offers top-notch financial reporting, payroll, and tax services. Their expertise has helped our business stay organized and stress free”
David Martinez
“We no longer worry about payroll, bookkeeping, or compliance. Their outsourcing services are wonderful and truly stress-free”
Olivia Brown
“The best outsourcing team They manage our financial tasks perfectly, saving us time and money. A game changer for our business!”
James Wilson
“Highly recommended Their outsourcing solutions helped us streamline operations while maintaining accuracy and efficiency.”
Don’t miss out – take advantage of our free consultation and take the first step towards achieving your goals