vat deregistration -

VAT DEREGISTRATION

VAT deregistration is the process by which a business cancels its VAT registration with the Federal Tax Authority (FTA) . While VAT registration is mandatory for businesses that meet the taxable threshold, there are instances when deregistration becomes necessary or beneficial . Failure to deregister when required can result in penalties, making it essential for businesses to understand when and how to initiate this process.

What is VAT Deregistration?

VAT deregistration is the formal process by which a business ceases to be a registered entity under the VAT system . This occurs when a business no longer meets the criteria for VAT registration, either due to a drop in taxable turnover, the cessation of business activities, or other specific circumstances.By deregistering, a business is no longer obligated to charge VAT on its supplies, file VAT returns, or fulfill other VAT-related obligations. However, VAT obligations up to the point of deregistration must be properly settled

Why is VAT Deregistration Required?

Mandatory VAT Deregistration

Businesses must deregister if:Taxable supplies and imports drop below AED 187,500.
Cessation of business activities.

Voluntary VAT Deregistration

Businesses may choose to deregister if:Taxable supplies fall below the mandatory threshold (AED 375,000) but remain above voluntary threshold (AED 187,500).

24/7 Support

Dedicated support and expert advice available around the clock to meet your tax needs, ensuring personalized solutions tailored to your unique financial situation.

0 ⁺

Years Of Experience

VAT-DEREGISTRATION

Steps for VAT Deregistration

Deregistering from VAT is a straightforward process, but businesses must ensure they meet the eligibility criteria before applying. Below are the main steps involved in VAT deregistration:

Log into the FTA Portal
Access the VAT Deregistration Form.
Complete the VAT Deregistration Form.
Upload Supporting Documents
Submit the Application
Await Approval.