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VAT Deregistration Services in Dubai, UAE

VAT de-registration, also known as cancellation or termination of VAT registration is typically done when a business needs to cancel its VAT registration with the UAE Federal Tax Authority.  VAT deregistration in UAE can be approved by the FTA only if the termination reasons are valid and the conditions are fulfilled as per the law. Businesses in UAE can de-register from VAT in case if their turnover after registering with the FTA did not exceed AED 187,00 in the first 12 months after registration or if the business ceases producing taxable supplies. 

vat deregistration services in uae

Deregister for VAT

VAT Deregistration in UAE is an online procedure done through FTA portal. Nevertheless, the businesses which stop functioning need to obtain company liquidation letter from the Govt authorities to apply for the deregistration of VAT. CDA offers seamless VAT deregistration services in Dubai and UAE to help businesses cancel their VAT services. 

In a recent issuance, the FTA announced that companies can opt for deregistration from the VAT based on certain conditions in accordance with the Federal Decree-Law No. 8 of 2017.

VAT De-registration in UAE is a procedure that allows a business to withdraw from paying taxes either voluntarily or mandatorily. 

Once the application for the VAT deregistration in UAE is submitted to the FTA; it will check the application and cancel the VAT number provided to the entity if it has complied with the law. If the reasons are not valid and the conditions are unfulfilled, the FTA may reject the application for deregistration.

The FTA proclaimed that the UAE Tax System is based entirely on voluntary compliance by Taxable Persons, whether it is with regard to registration, filing Tax Returns and payment of due tax or de-registration. 

Hence, a company can apply for the deregistration voluntarily or mandatorily, as discussed below: -

Voluntary Deregistration

As per Article 17, a Registrant cannot apply for VAT Deregistration within 12 months of the date of

Tax Registration.

A company can go forward with voluntary deregistration procedure: - 

  • If it has completed 12 months of the date of Tax Registration.
  • If it does no longer supply the goods that are taxable.
  • If its annual turnover is below AED 187,500 even after supplying taxable goods.
  • If its total value of the anticipated taxable supplies or expenses subject to tax in the coming 30-days period will not exceed the voluntary registration threshold.
  • If the company is closed forever.

Mandatory Deregistration

A company can go forward with mandatory deregistration procedure: -

  • If the company no longer makes revenue of AED 375,000. 
  • If the company doesn’t supply any taxable goods.

VAT Deregistration for Groups

FTA will approve the cancellation of VAT registration for a group: -

  • If the registered business no longer meets the requirement to be considered as a group.
  • If the companies in the group are no more financially associated with the group.
  • If it foreknows the tax status as a group can result in any sort of tax evasion.

Once the deregistration number is approved, the authorities will cancel the VAT number issued on registration. If any company wishes to reregister, they can fill the registration form once again, and a new VAT number will be issued to them.

Situations for disapproval of the application

The registrants will not be de-registered if, 

  • It fails to submit the application within 20 business days.
  • It has not paid all due taxes and administrative penalties.
  • It has not filed all required tax returns for the period in which they were registered. 

Failure to submit the de-registration application within the period specified in the tax legislation will lead to the imposition of administrative penalties of Dh 10,000 as stipulated in the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.

How to Submit Deregistration Form?

  • Fulfil all the criteria to deregister for VAT in UAE.
  • Log in to the VAT Account on FTA Portal.
  • Fill the VAT deregistration form along with the details and the reason for the VAT deregistration.
  • Receive SMS confirmation on the registered number for submission.
  • Submit the form electronically.

After the successful submission, you will find the application status as “Pre-Approved.” It will be “Approved” only when you clear all the liabilities.

If you have any plan to continue your business or you are waiting for any new investor, it is not advisable to move forward with the VAT cancellation process. If such a situation arises, better keep the TRN, and file the tax return as ZERO if the company expect a good return within the next twelve months period.

How CDA helps you in Deregistration Process?

CDA provides the expert services of VAT Deregistration in UAE in compliance with the Emirati VAT laws. CDA analyses the A to Z reasons and makes the deregistration process easy for you. Right from scratch, CDA reviews your business activities and deregistration possibilities to ease the process. 

We identify the importance and need for VAT services for every business entity in the UAE, and deliver a wide range of VAT services in Dubai, which include: -

  • Vat Training 
  • VAT registration
  • VAT deregistration
  • VAT compliance and control
  • VAT filing and payment
  • Vat Impact on Company Cash Flow, etc.

Besides offering VAT deregistration services in Dubai, CDA provides various business services that include CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services and Due Diligence Services.

If you have any queries regarding the UAE VAT De-registration process or about your current business, feel good to discuss with us. CDA is there for your support! 

Our expert will give you one-hour Free Consultation to keep your uncertainties away!

Frequently Asked Questions [FAQ]

1. Can I de-register my TRN after 6 months of registration, if it was a voluntary registration?

No, you will have to wait for 12 consecutive months in order to apply for tax de-registration.

2. If my last 12 months turnover is less than the mandatory threshold, can I de-register?

Yes, you can apply for tax de-registration.

3. How to cancel VAT registration in UAE?

On the dashboard, click on the option ‘De-Register’. Reason for de-registration as well as the Date from when you would want to de-register will have to be entered. Other relevant information would also be needed to be submitted where applicable. FTA will notify on the result of the application submitted. 

4. I do not have sales for the last 12 months and I did not file a single tax return during this period, can I de-register?

Yes, you can apply of de-registration. But the approval will be received only after all the necessary tax and administrative penalties have been paid for.

5. Can we remove/de-register one company from a tax group?

Yes. The representative member of the group should notify the authority within 20 days of terminating the eligibility of the member.

6. Are there any penalties faced in case of delayed de-registration?

In case of delay in compulsory de-registration, yes, there would be a penalty of AED 10,000. The timeframe within which the de-registration application should be submitted is within 20 business days.

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