VAT De-Registration Services in Dubai,UAE | FTA Services |Thevatconsultant

VAT De-registration

Majority of businesses in UAE which meet the criteria for registration under VAT have already registered by now. A registered taxable person is required to comply with the required rules and processes under VAT. Invoices have to be issued in the specified format, returns need to be filed on a timely basis and the tax due needs to be paid by the due date. The VAT Law provides registered taxable persons with the facility to cancel their VAT registration. Let us understand the circumstances in which a person can de-register under VAT and the process to be followed for the same.

What is VAT De-registration?

Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration. It means de-activation of the registration and the VAT number of the taxable person. Tax de-registration can be applied for by a person registered under VAT or done by the FTA on finding that a person meets the conditions for de-registration.

When can a person apply for VAT De-registration in UAE?

A person registered under VAT can apply for Tax De-registration in the following 2 cases:

The person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period OR

The person’s taxable supplies or taxable expenses incurred over a period of 12 consecutive months is less than the voluntary registration threshold (AED 187,500) and he/she does not anticipate to cross this threshold in the next 30 days

Note that a person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration.

When can a registration be cancelled by the FTA in UAE?

The FTA can cancel a person’s registration if it is found that the registrant satisfies either of the 2 conditions listed above for de-registration. This is called mandatory tax de-registration. Hence, VAT de-registration is a welcome option for persons who have registered under VAT but do not continue to make supplies requiring registration. Such persons do not need to continue being registrants and can apply for tax de-registration on satisfying the applicable conditions.

A Business Registrant Cancelled The Trade License

Things to cross-verify

They should have a Valid Cancelled Trade license from the authority
Is there any penalty in the profile or not? (Can’t take the file, if they have fine)
VAT filing needs to be completed until the last filing.
Registrant should have proper file breakup (Sales, Expense, Zero-rated supplies, and Expenses) since VAT registered
A registrant must apply for VAT deregistration within 21 days from the occurrence of the above-mentioned Then they will be subject to a late de-registration penalty of AED 10,000

Required documents:

Cancelled Trade license
FTA Login credentials
Proper file breakup

If The Business Is Still Making Taxable Supplies But The Value In The Preceding 12 Calendar Months Is Less Than The Voluntary Registration Threshold (AED 187,500) Or Nil Filing

Things to cross-verify

Is there any penalty in the profile or not? (Can’t take the file, if they have fine)
VAT filing needs to be completed until the last filing
Registrant should have proper file breakup (Sales, Expense, Zero-rated supplies and Expenses) since VAT registered

A registrant must apply for VAT deregistration within 21 days from the date of the Last filing. Then, they will be subject to a late de-registration penalty of AED 10,000

Required documents

FTA Login credentials
Proper file breakup

A Business Registrant's Change The Legal Form From Sole To LLC To Sole/ Individual To LLC Form LLC To Individual

Things to cross-verify

Is there any penalty in the profile or not? (Can’t take the file, if they have fine)
VAT filing needs to be completed until the last filing.
Registrant should have proper file breakup (Sales, Expense, Zero-rated supplies and Expenses) since VAT registered
A registrant must apply for VAT deregistration within 21 business days from the occurrence of a Legal form amendment. Then they will be subject to a late de-registration penalty of AED 10,000

Required documents:

Old Trade license
New Trade license
Updated MOA
Passport copy and EID as per the new license
If they want to change the mobile number and email ID, need to collect it
Office address Proper file breakup
FTA Login credentials

A Business Registrant Selected The Legal Form Wrongly At The Time Of Registration

Initially, we need to apply for an Entity type amendment in the portal. It is approved, no need to apply for VAT de-registration
If it got rejected by FTA, then we have to apply for VAT de-registration

Things to cross-verify

Is there any penalty in the profile or not? (Can’t take the file, if they have fine)
VAT filing needs to be completed until the last filing.
Registrant should have proper file breakup (Sales, Expense, Zero-rated supplies, and Expenses) since VAT registered
Client will be subject to a late de-registration penalty of AED 10,000

Required documents:

FTA Login credentials
Proper file breakup

A Business Registrant Ownership Changes In The Sole Establishment License

Things to cross-verify

Is there any penalty in the profile or not? (Can’t take the file, if they have fine)
VAT filing needs to be completed until the last filing.
Registrant should have proper file breakup (Sales, Expense, Zero-rated supplies and Expenses) since VAT registered
. A registrant must apply for VAT deregistration within 21 business days from the occurrence of an Ownership change. Then they will be subject to a late de-registration penalty of AED 10,000

Required documents:

FTA Login credentials
Old Trade license
Old Trade license
Passport copy and EID as per the new license
If they want to change the mobile number and email ID
Office address
Proper file breakup

Duplicate VAT TRN Generated For Same Business License

Here we need to submit the request letter to FTA, mentioning the Duplicate TRN number and requesting them to deregister it.

FTA will provide the VAT de-registration certificate once completed.

VAT Registration