VAT De Registration in UAE

The introduction of VAT in Dubai, UAE, a largely tax-free country, brings with it a plethora of benefits as well as a slew of new obstacles. VAT deregistration is just as vital as VAT registration, and businesses should know when and under what conditions they should file for VAT deregistration in the UAE.

Taxable firms in the UAE apply to the FTA to have their VAT registrations cancelled for a variety of reasons, including the cessation of manufacturing taxable supplies or the company’s ceasing operations. It is critical for businesses to file for VAT deregistration in such circumstances. VAT-registered businesses, on the other hand, must know when and how to revoke their VAT registration. A reputable VAT consulting firm, such as HLB HAMT can help in such situations.

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HLB HAMT - Accounting Firm in UAE

Phone:- +971 4 327 7775
Mobile:- 971 506 77 5860
WhatsApp:- +971 56 219 1607
Email:- dubai@hlbhamt.com

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    VAT Consultants HLB HAMT

    Since the Federal Tax Authority has the power to accept or reject petitions for VAT deregistration, you’ll want yours to have a good chance of being approved. That is precisely where we can assist you. Our authorized tax consultants will carry out the complete VAT deregistration procedure for your business.

    We can supply you with all of the essential information and helps to finish the procedure through our regulated tax agents in the UAE, who also provide a multitude of VAT-related services in UAE.

    What really is VAT Deregistration in UAE?

    VAT deregistration is a procedure in which registered businesses must terminate their VAT registration. When a taxable firm ends business or the necessity for VAT registration is no longer required, the deregistration method becomes necessary. Taxable firms must apply for VAT deregistration, and the FTA will cancel the registration after the request is approved and all relevant documentation is submitted.

    VAT deregistration is just as essential as VAT registration, and businesses should be aware of when and under what conditions they should file for VAT deregistration in the UAE. Failure to do so on time might result in hefty penalties.

    VAT Cancellation Requirement in UAE

    Accredited businesses that no longer trade in taxable supplies can seek to the FTA for tax deregistration. If the value of taxable products and services falls below the legal level of AED 375,000 but above the voluntary threshold of AED 187,500, VAT registered enterprises are also eligible for voluntary deregistration. However, if the firm’s taxable supply falls below the voluntary level, the corporation must deregister from VAT.

    Businesses are subjected to two forms of VAT deregistration, according to FTA regulation. Businesses can seek for:

    1. Voluntary VAT Deregistration
    • The business ceases to engage with taxable suppliers;
    • The amount of taxable costs or supplies in the previous year, as well as the next thirty days, does not exceed the threshold for voluntary VAT registration in the UAE.
    1. Compulsory VAT deregistration in which the FTA cancels the VAT registrations of qualifying businesses.
    • It’s about taxable suppliers (both goods and services).
    • If the firm has been registered with the tax authorities under voluntary registration for VAT for twelve calendar months, it can deregister.

    VAT Deregistration must be completed within 20 days. If a firm or individual fails to file for VAT Deregistration within the FTA-mandated timeframe, they will be fined.

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