Currently, most UAE companies that meet the UAE VAT registration standards have already registered. Registered taxpayers must comply with the regulations and procedures of the VAT regulations. Invoices must be issued in the specified format, and returns need to be submitted in time, and tax due should be paid before the due date. The “VAT Law” provides registered taxable persons with the convenience of canceling their VAT registration. Let us understand the circumstances under which a person can cancel under VAT and the procedures to follow.

What is VAT cancellation?

Tax refund is a requirement for registered taxpayers to cancel their VAT registration. This means deactivating the registration and VAT number of the taxable person. The tax refund can be applied by a person registered under the value-added tax, or by the FTA when it finds that someone meets the conditions for cancellation.

When can a person apply for VAT cancellation in the UAE?

In the following two cases, a person registered with VAT can apply for a tax refund:

One kind. The person ceases to provide taxable supplies and is not expected to provide any taxable supplies for the next 12 months, or

b. The person’s taxable supplies or taxable expenses incurred for 12 consecutive months are below the threshold for voluntary registration (AED 187,500), and he/she does not expect to exceed the threshold within the next 30 days

Please note that those who voluntarily register for VAT cannot apply for cancellation within 12 months after the registration date.

In the UAE, what is the process for cancellation of registration under VAT?

The cancellation process under VAT is as follows:


When can FTA cancel the UAE registration?

If it is found that the registrant meets any of the above two cancellation conditions, the FTA can cancel the registration of that person. This is called a mandatory tax refund.

Therefore, cancellation of VAT registration is a popular choice for people who have already registered for VAT but no longer continue to provide items that require registration. These people do not need to continue to be registered persons and can apply for tax cancellation if they meet the applicable conditions.

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