VAT Deregistration in UAE : FTA defines conditions for companies
VAT Deregistration in UAE : Failing to submit application could lead to the imposition of administrative penalties
The Federal Tax Authority, FTA, has defined the conditions for VAT Deregistration in UAE, accordance with Federal Decree-Law No. 8 of 2017.
The FTA explained that if a registrant stops making taxable supplies or if the value of the taxable supplies made by the registrant over a period of 12 consecutive months is less than the voluntary registration threshold of Dh187,500 and it is not expected that the total value of the registrant’s anticipated taxable supplies or expenses subject to tax in the coming 30-day period will exceed the voluntary registration threshold, then the registrant must submit a de-registration application to the Authority.
It went on to say that the VAT Deregistration application must be submitted within 20 business days of the occurrence of any of the aforementioned cases using the Authority’s e-Services portal, adding, “knowing that failing to submit the VAT Deregistration application within the period specified in the tax legislation will lead to the imposition of administrative penalties as stipulated in the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.”
VAT Deregistration in UAE: The Authority confirmed that registrants will not be de-registered unless they have paid all due taxes and administrative penalties and filed all required tax returns for the period in which they were registered as stipulated under the tax legislation.
VAT Deregistration in UAE Penalty
The penalty for failing to apply for a mandatory de-registration of VAT within the specified time frame i.e. within 20 business days, from the occurrence of the event causing the tax payer entity to get eligible for tax deregistration, is AED. 10,000.*
You must cancel your registration if you’re no longer eligible to be VAT registered
Basically, a tax registration number is your VAT Number or VAT Registration Number through which the authority will be able to recognise or identify you
According to the UAE Ministry of Finance, a business must register for VAT if their taxable supplies and imports exceed the mandatory registration threshold of Dh375,000
Companies and individuals who registered with the Federal Tax Authority (FTA) for value-added tax can deregister if their annual turnover did not exceed Dh187,500 ($51,000) 13 months after registering with the FTA.
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*always Check FTA official site for the updates
The following blog regarding the vat deregistration in uae is brief.I want to add on that for degistering for VAT,I have gone ahead and accessed my agent login with HMRC to do this following, I have clicked on ‘deregister for VAT’ and got this following message on my screen that:
“Your client has signed up for Making Tax Digital for VAT so you cannot submit their returns using VAT online services”.