As per UAE VAT law, under the regulations of FTA, allow for taxable persons or businesses to deregister from the Federal Tax Authority when you meet valid following scenarios.
- Voluntary Deregistering from VAT
Under FTA rules and regulations, any individual or business can deregister from VAT, if:
- Is still supplying with the taxable goods and services, but for the past 12 calendar months, the taxable supplies or taxable expenses were under the mandatory VAT registration threshold (i.e. below AED. 375,000.) AND,
- Twelve calendar months have been passed since registered with FTA under voluntary registration.
If the above condition is met, the taxable persons or businesses may apply for Voluntary deregistration from VAT. No limitation for any number of days to apply for deregistration from the federal tax authority.
- Mandatory Deregistering from VAT
Under FTA rules and regulations, such a taxable person or the taxable businesses which,
- Stops supplying in taxable goods and services OR,
- The taxable supplies or taxable expenses in the previous 12 months and the next 30 days do not exceed the voluntary registration threshold (i.e. below AED.187,500.)
If the above condition is met, taxable businesses or the taxable individual who was registered as a taxpayer with Federal Tax Authority fulfils above criteria, and they must not delay applying for deregistration from FTA to avoid any penalties.
The time frame for submission of application with FTA
Under the above criteria, the taxable businesses or the taxable individual eligible for VAT deregistration, a time limit of only 20 business days from the occurrence of the above event for such eligibility. Failing to apply, will attract fines as a penalty for late application.
How to apply for deregistration from FTA?
Once the registered persons satisfy the above criteria to deregister from FTA in UAE, they can do logging into their FTA Portal account.
After login in, you can fill up with the details along with the reason for the VAT deregistration and subject to approval from the federal tax authority. Upon acceptance, FTA may ask to fulfil following obligations depends on the application
- Tax Liability.
- Final VAT return.
- Penalties, if applicable.
Deregistration penalty of AED 10,000.00 will apply for non-submission of application within 20 business days.
VAT Group Deregistration
The group VAT deregistration in UAE is the same as that of individual taxable persons. The guidelines, procedures and the criteria specified in the VAT Group deregistration guide.
VAT deregistration services in Dubai, UAE
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The blog is written by Senior Consultant at Alfamc.com
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