VAT Deregistration in UAE is an online process. Businesses and individuals who are registered under the Federal Tax Authority (FTA) can de-register from VAT in two situations:
- If their turnover did not exceed AED 187,500 in the 12 months after registering with the FTA, they must apply for the VAT Deregistration.
- If the business stops making taxable supplies, then they have to apply for VAT deregistration.
If a tax registrant applied for Voluntary registration on January 1, 2018 and after 12 months (on December 31, 2018) if the business has not made taxable supplies equal to AED 187,500, the business shall analyze and evaluate if it’s taxable supplies will exceed within the voluntary threshold (AED 187,500) in the next 30 days (ending January 30, 2019) then they can apply for VAT Deregistration in the next 20 days.
If the businesses or individuals do not apply for VAT Deregistration within the advised time as per the FTA law, then they will get a penalty and after paying the fines and penalties then the authorities will approve their VAT De-Registration.
Let A&A Associate L.L.C handle all the complex issues regarding VAT in UAE.