Most of the businesses in UAE who have matched the registration criteria have already registered themselves under the VAT. It is essential for the registered taxable person to comply by the rules and regulation which has been set by the authorities. The invoices of those tax returns need to be issued in precise formats and the returns is required to be filled punctually from time to time and the exiting tax amounts are also required to be submitted on time.

Under the VAT law, any person who are registered under it, or falls under the taxable category can choose to cancel their registration. So, let us have a look at some of the circumstances under which a person can opt to deregister themselves from VAT.

What does de-registration VAT means?

Deregistration can be defined as the provision of a taxable person in which the person can cancel their VAT registration. So, in other terms, it can be defined as deactivating your VAT profile. As well as your VAT number.

De-registration can be easily applied by anyone who are registered under the VAT or it can be done by the FTA as well by finding the person who matches the de-registration criteria.

When to apply for VAT de-registration?

Any eligible person, who is considering to deregister themselves can apply for the process in two cases which are:

  1. The person has stopped making taxable supplies and have no expectation of making any taxable supplies in the upcoming twelve months.
  2. The taxable supplies of the person or their taxable expenses that have incurred over a consecutive 12-month period is less than the voluntary registration threshold and the eligible person is not expecting any further threshold in the next thirty days.

It is essential to note that a person who has voluntarily registered under the VAT cannot apply for deregistration within twelve months from the date of registration.

What is UAE’s VAT de-registration process?

The process for deregistering under UAE’s VAT law are as follows:

  • The registrant should apply for de-registration under 20 business days from the date when any of the above mentioned occasions occurred. It is essential for the registrant to ensure that the tax due as well as the other administrative penalties are fully paid and the tax return has been filled. In the event it is not followed as instructed, the registration shall not be cancelled.
  • In the event the de-registration appeal of the candidate has been granted, the registrant’s tax registration shall be cancelled on the last day of the tax period or on a day that has been chosen by the FTA. And when the deregistration is completed successfully, the candidate shall receive a notification about the same within 10 days from the date of the approval.

Compulsory deregistration happens when the assessment specialists themselves drop the VAT number of any firm. On the off chance that the authority checks that the firm is neither making assessable supplies nor expects to do as such, it obligatorily de-enlists the firm. Tank enrollment is additionally transferable with the exchange of business.

When can your registration get cancelled?

The FTA, the tax governing body of UAE, can cancel a person’s registration if it is found that the registrant is falling under any of the above mentioned category which are required for de-registration. If you require VAT registration or de-registration guidance along with return filing, auditing, accounting and company incorporation services, GCC Filings is a great place to start.

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