A Guide to VAT Deregistration in UAE

VAT deregistration in UAE is a simple process; businesses must complete their VAT deregistration process correctly and comply with the rules. Businesses must also complete it when they are not eligible to do so; otherwise failing to deregistration faces a heavy penalty. 

VAT Deregistration Criteria in UAE

As per the Federal Tax Authority (FTA) of UAE, there are specific criteria applying for VAT deregistration: 

• When businesses’ Taxable Supply Ceases 
• Businesses taxable supplies during the past 12 months were less than the mandatory threshold ( AED 375,000)
• If businesses have 2 or more TRNs for the same entity or a registered branch, deregistration is applicable for the ‘Other’ reason.

 

Deregistration Preconditions: Registrants must submit all their due taxes, tax returns, final tax returns, and penalties before deregistration. 

How To Apply For VAT  Deregistration in UAE

You can apply for deregistration through the FTA e-Portal. ADEPTS will also assist you in successfully completing the application process.   

 

• Access the EmaraTax account dashboard.
• Click on “View” to access the Taxable Person Account.
• Under the title “VAT,” click on “Actions” and choose “DeRegister.”
• Complete the deregistration process.

Documents for VAT Deregistration in UAE

For deregistration, you must have the following documents:

• Valid Emirate ID
• Declaration form, signed and dated by an authorised signatory
• Trade licence 
• Financial turnover template
• Taxable Supplies template
• Taxable Expense template

Penalties Against VAT Deregistration in UAE

Failing to deregister leads to penalties. Therefore, businesses must deregister timely, and ADEPTS ensures compliance with all regulations. We’ll assist you throughout the deregistration process.  

 

• Failure to submit a deregistration application within the specified timeframe leads to an AED 1,000 penalty in case of delay and on the same date monthly thereafter, up to a maximum of AED 10,000.

 

ADEPTS will assist you in complying with all the requirements to avoid the penalties. Contact us for VAT deregistration and how to stay compliant with UAE tax laws.