No Headaches, No Confusions – Just an Effortless Process of VAT Deregistration!
Feeling a bit overwhelmed about VAT deregistration in the UAE? Leave all the worries behind and let us handle everything 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.
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.
VAT Deregistration or Cancellation?
To ensure a smooth and hassle-free process, it’s recommended to seek professional help from a VAT deregistration service at Now Consultant. They can assist with preparing the application, liaise with the tax authorities on your behalf, and ensure compliance with all legal requirements.
Conditions for VAT Deregistration
- If you stop selling things that have VAT, and you won’t sell anything with VAT for the next year, you might not need to deal with VAT.
- If the money you made from selling things with VAT in the last year is less than AED 187,500, and you don’t think it will go over this amount in the next month, VAT might not be necessary for now.
Types of VAT Deregistration in the UAE
Mandatory VAT Registration
As per the rules from the FTA (that's the tax people), if a company decides to stop selling taxable goods and services, or if the money they made from selling those goods becomes less than AED 187,500 in the last year, they have to tell the tax people and stop dealing with VAT. If this happens, the company needs to apply to stop dealing with VAT within 20 business days. If they don't do it on time, they might get a penalty of AED 10,000.
Voluntary VAT deregistration
There's also something called "voluntary VAT deregistration." This means if your annual turnover for the last year goes below AED 375,000, they can choose to stop dealing with VAT. But if it goes below AED 187,500, they have to stop. If a company started dealing with VAT because they wanted to, not because they had to, they can choose to stop dealing with VAT any time after 12 months from when they started. There's no hurry for this – they just need to find experts who know a lot about taxes to help them do it right.
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 5 years from the date of deregistration.
Why Choose Us for VAT Deregistration in the UAE?
Tax Codes Made Simple
Do you know those complex tax codes that can give you a headache? Well, Now the 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.
See What Makes Our Clients Happy?
Frequently Asked Questions
Can You Deregister for VAT and Then Register Again?
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 the UAE.
How Long Does It Take to Deregister for VAT in UAE?
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.
How to de-register for VAT
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.
What's the penalty for not applying for mandatory deregistration on time?
If a business fails to apply for mandatory VAT deregistration within 20 business days, it may face a penalty of AED 10,000.
Is there a time limit for voluntary VAT deregistration?
No, there is no specific time limit for voluntary VAT deregistration, but it’s crucial to follow the process correctly.
How long does a business have to wait before choosing voluntary VAT deregistration after initial registration?
A business can choose voluntary deregistration any time after twelve months from the registration date.
Is there a specific process for voluntary VAT deregistration in the UAE?
Yes, businesses should seek the assistance of experienced tax agents to ensure a successful voluntary deregistration process.
How can Now Consultant assist with the VAT deregistration process?
Now Consultant provides expert guidance and support throughout the VAT deregistration journey, ensuring businesses comply with regulations and avoid potential pitfalls.
