Effortless VAT Deregistration in UAE
Don't Let Deregistration of VAT Overwhelm You - Let Us Handle It with Ease and Confidence
Don’t risk legal penalties or administrative burdens by attempting to deregister for VAT on your own. Trust our expert service to handle the process for you and avoid costly mistakes. Contact us today to secure a stress-free and compliant VAT deregistration in the UAE.
VAT Deregistration or Cancellation?
Value-added tax (VAT) is a consumption tax that is levied on goods and services at each stage of the supply chain. In the UAE, VAT was introduced on January 1, 2018, at a standard rate of 5%. Businesses that exceed the mandatory VAT registration threshold are required to register for VAT and file VAT returns on a regular basis. However, there are circumstances under which businesses may need to deregister for VAT.
Who Should Deregister For VAT?
Businesses in the UAE can deregister for VAT if they meet one of the following conditions:
- The business has ceased trading or has been sold.
- The business no longer meets the mandatory registration threshold.
- The business has changed its business activities in such a way that it is no longer required to register for VAT.
- The business is part of a VAT group and wishes to leave the group.
How To Apply For VAT Deregistration In UAE?
If a business wishes to deregister for VAT, it must submit a deregistration application to the Federal Tax Authority (FTA) within 20 business days from the date of the occurrence of any of the conditions mentioned above. The application must be submitted online through the FTA’s e-Services portal.
Here’s a the step-by-step process for VAT Deregistration in Dubai:
- Prepare a deregistration application with supporting documents, including financial statements and evidence of the cessation of taxable activities.
- Submit the application through the Federal Tax Authority’s online portal and pay any outstanding VAT liabilities.
- Await confirmation of VAT deregistration and update records accordingly.
The deregistration application must include the following information:
- The reason for deregistration
- The last VAT return filed by the business
- The date of the last supply made by the business
- The expected date of the last VAT return
The FTA will review the application and may request additional information if necessary. If the FTA approves the application, it will issue a deregistration certificate within 20 business days from the date of the application.
To ensure a smooth and hassle-free process, it’s recommended to seek professional help from a VAT deregistration service provider. They can assist with preparing the application, liaise with the tax authorities on your behalf, and ensure compliance with all legal requirements.
So, approach Now Consultant today without giving it a second thought because we are going to assist you at every step of the process.
Consequences Of VAT Deregistration:
Once a business is deregistered for VAT, it is no longer required to charge VAT on its supplies or file VAT returns.
However, there are some consequences of deregistration that businesses should be aware of:
- Any input tax credit that has been claimed but not used must be repaid to the FTA.
- Any outstanding VAT must be paid to the FTA.
- The business must maintain all records and documents relating to VAT for a period of 5 years from the date of deregistration.
Why Us For VAT Deregistration in Dubai?
Stand Out with Trailblazing Financial Reporting in UAE
Tax Codes Made Simple
You know those complex tax codes that can give you a headache? Well, Now Consultant has experts who speak that language fluently. This means we can explore through the confusing stuff and make sure your VAT deregistration is smooth sailing, without any unnecessary hiccups.
Integration with Your ERP System
Your ERP system might sound like jargon, but it's basically a tool that helps run your business. Now Consultant knows how to make it work seamlessly with the whole VAT deregistration process in UAE. It's like making sure all your gears are perfectly aligned, so everything keeps running smoothly.
Early Problem Detection
Think of us as problem detectors, but without the crystal ball. We use advanced tools to identify potential issues before they become big obstacles. So, you can rest assured that we're prepared to handle any challenges that might arise during your VAT deregistration journey.
Data Security Measures
We treat your financial data with the utmost care, like a precious treasure. Now Consultant employs strong encryption techniques to ensure your data remains safe and secure. It's like having a high-tech lock to safeguard your sensitive information from unauthorized access.
To sum it all up, Now Consultant brings technical expertise to the table, making VAT deregistration in UAE, a straightforward process. We simplify tax codes, integrate systems flawlessly, anticipate issues, and prioritize data security.
Frequently Asked Questions
You should deregister for VAT if you are no longer eligible to be registered or if you have stopped making taxable supplies. It’s important to do so promptly to avoid any penalties or non-compliance issues.
Yes, you can deregister for VAT and then register again if you become eligible for VAT registration. However, you must wait for a specific period before reapplying, and there may be penalties for repeated registration and deregistration of VAT in UAE.
Yes, you can reclaim VAT on eligible expenses that were incurred before deregistration. However, there are strict time limits for doing so, and you must comply with all legal requirements to ensure a successful claim.
The timeframe for deregistration of VAT in UAE can vary depending on various factors such as the complexity of the case and the volume of applications being processed. However, it typically takes around 20-30 working days for the tax authorities to process the application and approve the deregistration.
To deregister for VAT in the UAE, you must meet specific criteria, such as if your business turnover falls below the mandatory registration threshold. You can apply for deregistration through the UAE’s Federal Tax Authority (FTA) portal by submitting the required documents and forms.
VAT deregistration in Dubai or UAE can be a complex process, and it is essential that businesses understand the regulations governing VAT. We hope that this guide has provided you with a comprehensive understanding of the process of deregistration of VAT in UAE. If you require any further assistance with VAT deregistration or need any VAT Consultancy, please do not hesitate to contact Now Consultant.