TAX SERVICE

vat deregistration

Learn about

It is common for businesses to de-register for VAT with the UAE Federal Tax Authority, also known as cancelation or termination of VAT registration. Only the FTA can approve a VAT deregistration in the UAE if the reasons for termination are valid and the necessary conditions are met. Upon registering with the FTA for the first time, businesses that do not exceed AED 187,00 in their first 12 months of operation or cease making taxable supplies can deregister from the VAT case.

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Procedure

If your business has stopped functioning you need to obtain a company liquidation letter from the government authorities to be able to request the deregistration of VAT. VAT Deregistration is done electronically through the FTA portal. Once your VAT-deregistration application is received and reviewed by FTA the status of your VAT De-Registration will start displaying ‘Pre-Approved’ after confirmation provided you have complied with the law. Then the next step is to submit the final VAT Return Filing. Businesses must clear all the outstanding liabilities in order to complete the VAT Deregistration process after the last VAT Return filing is done.

Step of Deregister VAT
  • Step 1 – Sign in to your FTA VAT portal.
  • Step 2 – On the dashboard, against the VAT registration, click on the ‘De-Register’ button.
  • Step 3 – Taxable Person Details are pre-populated in the de-registration application.
  • Step 4 – Reasons for VAT de-registration. Select from the drop-down list that on what basis you are de-registering for VAT.
    1. Business no longer making taxable supplies
    2. Business making taxable supplies, but below the Voluntary Threshold
    3. Business making taxable supplies, above the Voluntary Threshold, but below the Mandatory Threshold
    4. Other – please specify the reason
  • Step 5 – Effective date from which the Taxable Person is required or eligible to de-register depends based on the de-registration
  • Step 6 – Upload all the relevant supporting documents by clicking on ‘Choose Files’.
  • Step 7 – Review and confirm the authorized signatory and declaration section of the application form before submission.