VAT deregistration in UAE is the official process of canceling your business’s VAT registration with the Federal Tax Authority (FTA) when you no longer meet the eligibility criteria for VAT registration. Understanding when and how to apply for this deregistration is crucial for maintaining compliance with UAE tax laws and avoiding penalties.
When to Apply for VAT Deregistration
Businesses must apply for VAT deregistration within 20 business days of becoming eligible. You are required to deregister if your business stops making taxable supplies, if your taxable turnover falls below the mandatory threshold of AED 375,000, or if your business is being closed or liquidated. Additionally, businesses making taxable supplies above the voluntary threshold but below the mandatory threshold may also apply for deregistration. It’s important to note that businesses who voluntarily registered for VAT cannot apply for deregistration during the first 12 months following their registration date.
Eligibility Criteria for Deregistration
The Federal Decree-Law clearly defines eligibility conditions for VAT deregistration based on your business’s recent trading activity. Mandatory deregistration applies when businesses no longer meet VAT registration criteria, while voluntary deregistration is possible for companies with lower turnover or strategic operational needs. The application must specify whether you’re requesting mandatory or voluntary deregistration, along with supporting financial documentation.
How to Apply: Step-by-Step Process
The deregistration process is conducted entirely through the FTA’s EmaraTax portal using your registered credentials or UAE PASS. First, log in to the EmaraTax portal and navigate to the VAT Services section where you’ll find the ‘De-Register’ option next to your VAT registration. Select the basis for deregistration from the provided options, such as cessation of taxable supplies or turnover below thresholds, and enter the effective date for deregistration. You must then upload all required supporting documents in accepted formats, including financial statements, proof of ceased activities, trade license copy, bank statements, final VAT returns, and evidence of ceased taxable supplies. Before submitting, review all entered information and verify the authorized signatory details, then submit the application by clicking ‘Submit’.
Required Documents
To complete your VAT deregistration application, you’ll need to prepare several essential documents. These include copies of your trade license, bank statements, final VAT returns, evidence of ceased taxable supplies or activities, and documentation confirming your revenue levels. Additional documents may include sample invoices, duplicate TRN certificates, and completed templates for taxable expenses and taxable supplies. The FTA may request additional information during the review process, so ensure all submitted documents clearly support the information provided in your application.
Post-Application Process
After submitting your deregistration application, the FTA will review it and may initiate a tax audit if necessary. The FTA typically processes deregistration requests within 20 business days after receiving all required information and documents. If additional information is needed, the FTA will notify you via email, and you must provide the requested details and resubmit the application. Before approval, you must settle all outstanding VAT liabilities, including pending penalties, or submit a refund application if you’re in a credit position. Once approved, the FTA will issue a VAT deregistration certificate as official confirmation that your business is no longer VAT-registered. You’ll also need to submit a final VAT return as notified by the FTA after they review your deregistration application.
Partner with My Taxman for Seamless VAT Deregistration
Navigating the VAT deregistration process can be complex, with strict deadlines and detailed documentation requirements. My Taxman (mytaxman.ae) specializes in providing comprehensive VAT services across the UAE, ensuring your deregistration application is completed accurately and efficiently. Our team of tax experts understands the intricacies of FTA regulations and can guide you through every step of the process, from determining your eligibility to preparing and submitting all required documents. We help businesses avoid penalties, meet compliance deadlines, and ensure smooth transitions during business changes. Whether you’re closing your business, restructuring operations, or experiencing reduced turnover, My Taxman offers professional support to make your VAT deregistration hassle-free. Contact us today for expert assistance with your VAT deregistration needs and all other tax-related matters in the UAE.
