VAT Deregistration in the UAE is nothing but an online process. In general, businesses and individuals registered under Federal Tax Authority (FTA) can deregister from VAT given under the following situations:
- If a business’s turnover did not make more than AED 187,500 (Voluntary Registration Threshold) after 12 months from the date of registration at FTA, they must apply for the VAT Deregistration.
- If a business stops creating taxable supplies, they should apply for VAT deregistration.
- If their turnover was less than AED 375,000 (Mandatory Registration Threshold) after 12 months from the date of registration at FTA, they must apply for the VAT Deregistration.
A registrant has to apply for VAT deregistration within 20 business days from the happening of the above-mentioned events. Registrants like business owners or individuals can easily access and apply for VAT deregistration through the FTA portals.
How to apply online for VAT Deregistration?
- Login to your Federal Tax Authority (FTA) online portal.
- Click on the option of ‘DeRegistration’.
- Fill the VAT Deregistration form and send it to the authorities for review and approval
If the authorities confirm the VAT Deregistration, the status changes to ‘Pre-Approved’. Following that, businesses submit the final VAT Return Filing and should clear the outstanding liabilities if any to complete the VAT Deregistration process.
There is no particular time for VAT deregistration. If FTA registered company becomes eligible for deregistration of VAT, a time limit of just 20 business days from the date of eligibility cause is available. If not applied within that time, a financial loss will be incurred like fines will be charged as a penalty. For late registration, a fine of 10,000 may be charged.
VAT(Value Added Tax) Deregistration is an online procedure and it can be easily reached through the Federal Tax Authority (FTA) portal. The shutdown businesses must have a company liquidation letter from the authority to apply for VAT Deregistration.
Standard Auditing helps in de-registering your company from the Federal Tax Authority with ease and also makes certain of the fact that no fines are left behind.
For all sorts of VAT services in Dubai, contact Standard Auditing!