Voluntary Deregistration
As per Article 17, a registrant cannot apply for VAT deregistration within 12 months of registration.
After 12 months, a business may apply for voluntary deregistration if it no longer meets VAT registration requirements, such as falling below the taxable supply threshold.
Mandatory Deregistration
VAT deregistration is mandatory when:
- A company’s taxable supplies and imports fall below the required threshold.
- The company no longer supplies any taxable goods or services.
VAT Deregistration Options for Groups
For VAT groups, deregistration can occur under the following conditions:
Revenue Falls Below the Threshold
If the combined taxable supplies of the VAT group fall below the required threshold of AED 375,000 for the past 12 months, deregistration is mandatory.
No Supply of Taxable Goods or Services
If the VAT group ceases to supply any taxable goods or services, it becomes eligible for deregistration. This means the group has no further business activity that requires VAT registration.
Restructure or Liquidation
If a company within the VAT group undergoes restructuring or liquidation, resulting in the group no longer meeting the VAT registration requirements, the group can apply for VAT deregistration.
Situation Where Application May Be Disapproved
An application for VAT deregistration may be disapproved under the following circumstances:
Non-Compliance with VAT Obligations
If the VAT group has outstanding VAT liabilities or has failed to comply with VAT filing requirements, the FTA may refuse the application for deregistration.
Failure to Meet Eligibility Criteria
If the group does not meet one of the above conditions for deregistration (such as revenue still exceeding the threshold or continuing to engage in taxable supplies), the FTA will reject the application.
Failure to Meet Eligibility Criteria
If the group does not meet one of the above conditions for deregistration (such as revenue still exceeding the threshold or continuing to engage in taxable supplies), the FTA will reject the application.
Submitting VAT Deregistration in Dubai
Login to the FTA Portal
Go to the Federal Tax Authority (FTA) official website.
Login using your credentials (Username and Password).
Access the VAT Deregistration Section
From the dashboard, navigate to the “Tax Services” section.
Select the option for VAT Deregistration.
Review Your Application
Double-check the information entered in the form.
Make sure all supporting documents are included to avoid delays.
Submit the Form
Once everything is complete and accurate, click “Submit.”
The FTA will receive your application for review.
Wait for Confirmation from FTA
The FTA will process your deregistration request.
If your application is approved, you will receive confirmation, and your VAT registration will be canceled.
Check Eligibility for Deregistration
Ensure that you meet one of the three criteria for deregistration (Revenue below the threshold, no taxable supplies, or liquidation/restructuring).
If you qualify, proceed to the next step.
Fill in the Deregistration Form
Complete the VAT deregistration form with required details such as your business information, reason for deregistration, and supporting documents (such as financial statements, tax returns, etc.).
Submit the Required Documents:
Attach the necessary documents to the form, including:
Financial statements
Proof of cessation of taxable activity or reduced revenue
Other relevant documents related to your business activities
Wait for Confirmation from FTA
The FTA will process your deregistration request.
If your application is approved, you will receive confirmation, and your VAT registration will be canceled.
If further information or corrections are required, the FTA will notify you to make the necessary changes.
Confirm Deregistration
After your deregistration is approved, check your FTA account to confirm that your VAT status is updated and your VAT registration number (TRN) is canceled.
How Does Capital Plus Help You in the Deregistration Process?
Capital Plus offers comprehensive assistance throughout the VAT deregistration process to ensure smooth and efficient handling for your business. Here’s how we help:
Expert Guidance
Our experienced team will walk you through the entire VAT deregistration process, ensuring that you meet the necessary legal requirements and criteria set by the Federal Tax Authority (FTA).
Eligibility Assessment
We will assess your business’s eligibility for VAT deregistration based on factors such as revenue levels, cessation of taxable supplies, or business restructuring.
Preparation of Required Documents
We ensure that all the necessary documents, such as financial statements, proof of cessation of taxable activity, and other supporting paperwork, are correctly prepared and submitted.
Deregistration Form Submission
We handle the entire submission process on the FTA portal, ensuring accuracy in your application to avoid any potential delays or rejections.
Ongoing Support
If any issues arise or additional information is requested by the FTA, we assist in addressing them promptly, saving you time and effort.
Follow-up with FTA
We monitor the status of your deregistration application and ensure timely updates, giving you peace of mind throughout the process.
Eligibility to Apply for VAT Deregistration in UAE
Voluntary Deregistration
Taxable supplies and imports fall below AED 375,000.
Business has ceased taxable activities.
No taxable supplies made in the last 12 months.
Mandatory Deregistration
Taxable supplies and imports fall below AED 187,500.
Business has ceased operations or dissolved.
Business is liquidated or sold.
VAT Group Deregistration
Group no longer makes taxable supplies.
Group’s revenue falls below the registration threshold.
Group ceases to exist or is restructured.
Additional Conditions
Proof of cessation of taxable supplies.
No outstanding tax liabilities.
Evidence of asset disposal or business closure.
Post VAT Deregistration Process in UAE
Confirmation of Deregistration
After applying, the FTA will review your application and confirm deregistration. You’ll receive a confirmation notice.
Final VAT Return
A final VAT return must be submitted to declare any remaining VAT liabilities. Ensure all transactions are reported accurately.
VAT Settlement
If any VAT is due, it must be paid before deregistration is complete. The FTA will review this as part of the process.
Cancellation of VAT Certificate:
Once deregistration is approved, your VAT certificate is officially canceled. You will no longer be required to file VAT returns.
Maintain Records
Keep all records related to VAT for the mandatory retention period (5 years). This is important for future audits or queries.
Impact on Business Operations
Post-deregistration, your business cannot charge VAT on sales or reclaim VAT on purchases. Inform all clients accordingly.
Who Needs to De-register for VAT?
Businesses with Low Revenue
If your business's taxable supplies fall below the VAT registration threshold (AED 375,000) or is expected to, you may need to deregister for VAT.
Businesses that Cease Operations
If your business stops its taxable activities or is undergoing liquidation, VAT deregistration is mandatory.
Businesses That Stop Supplying Taxable Goods/Services
If your company no longer provides taxable goods or services, VAT deregistration is required.
Missing the Deregistration Deadline
Not applying for VAT deregistration within the prescribed period can lead to penalties.
Failure to Settle Outstanding VAT Liabilities
Businesses sometimes overlook settling their final VAT dues before applying for deregistration, which could result in fines or rejection.
Incorrect Final VAT Return
Submitting an incomplete or inaccurate final VAT return can cause delays in the deregistration process.
Not Maintaining VAT Records
Failure to keep VAT-related documents for the mandatory 5 years after deregistration can lead to legal complications.
Loss of VAT Refunds
Deregistering from VAT means you cannot claim VAT refunds on future purchases.
Legal Penalties
If you fail to comply with the VAT deregistration procedure, you might face fines and penalties imposed by the FTA.
Impact on Business Transactions
Post-deregistration, your business can no longer charge VAT on invoices or reclaim VAT on expenses, affecting cash flow.
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Frequently Asked Questions
Only businesses that meet specific criteria, such as no longer making taxable supplies or falling below the registration threshold, can apply for VAT deregistration.
Delayed VAT deregistration can result in fines and penalties imposed by the Federal Tax Authority (FTA) for non-compliance.
VAT deregistration can be done easily through the FTA's online portal by submitting a formal application along with required documents.
Yes, businesses can deregister their TRN after 6 months if they no longer meet the criteria for VAT registration, even if it was voluntary.
VAT registration can be canceled by submitting a deregistration application on the FTA portal, with supporting documents outlining eligibility for deregistration.
Yes, individual companies can be removed from a VAT tax group by submitting a request for deregistration to the FTA.
Yes, if your turnover falls below the mandatory threshold, you are eligible to apply for VAT deregistration.
