VAT De-registration

VAT de-registration provides for the cancelation of VAT registration by a registered taxable person. It signifies deactivation of the taxable persons registration and VAT number.

An individual registered under VAT or rendered by the FTA can apply for VAT de-registration on determining that a person meets the conditions for de-registration.

There are two conditions under which a business can apply for VAT de-registration in UAE

  • The company stops making taxable supplies and expects no taxable supplies to be made in the following 12-month span.
  • The taxable supplies or taxable expenses incurred by the business for a span of 12 consecutive months are lower than the voluntary registration threshold (AED 187500) and are not required to exceed this threshold over the next 30 days.

Unless the companies or individuals do not apply for VAT de-registration within 20 working days prescribed period by law, they will incur a penalty and the authorities must authorize their VAT de-registration after paying the fines and penalties.

FTA will review the application after applying for VAT de-registration and if they accept the VAT de-registration the VAT de-registration status will be changed to Pre-Approved. After that the company must submit final VAT return filling, the enterprises must clear all outstanding liabilities after the last VAT return filling to complete the process of de-registration of the VAT.

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