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VAT Deregistration In Dubai, UAE

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VAT Deregistration in Dubai

There are certain criteria for VAT registration in  UAE. But when a VAT registrant no longer fulfils the requirements for being subjected to VAT, they should apply for VAT Deregistration in Dubai. This allows the taxable party to cancel their VAT registration with Federal Tax Authority and suspend the given Tax Registration Number. VAT deregistration in Dubai is equally important as VAT Registration. The process of VAT deregistration involves several procedures which might seem to be a bit complex too. After completing these procedures, the tax authority will decide on the approval or rejection of your application. Late submission or failure in the submission of the application will cause penalties.

Eligibility for the VAT Deregistration in UAE

There are two types of VAT Deregistration; Mandatory VAT Deregistration and Voluntary VAT Deregistration. 

Mandatory VAT Deregistration:

One should mandatorily apply for VAT Deregistration;

  • If they are no longer produce the taxable items
  • The expense of the taxable supply falls below the voluntary threshold of AED 187,500 and it is not expect to exceed the threshold within the next thirty days.

Voluntary VAT Deregistration:

Voluntary VAT Deregistration is applicable for those;

  • Dealing with the taxable services and goods but their value has remained below the specified limit in the last twelve months.
  • Applied for VAT voluntarily and twelve months passed after the voluntary deregistration

Voluntary VAT deregistration in Dubai does not have a time limit. Business firms can decide on their own when it seems to be suitable.

Steps for the VAT Deregistration in Dubai

Those who are applicable for mandatory or voluntary VAT Deregistration can submit their application through the website of the Federal Tax Authority with the help of VAT Deregistration in Dubai our service consultant. Following are the steps of these procedures;

  1. Login to your FTA VAT account
  2. Locate the deregister button on your dashboard and click on it
  3. This will lead you to the VAT deregistration form in which the taxable person details will be auto-populated
  4. Enter the reasons for your tax deregistration and the date from which it became applicable to you. You can select the deregistration reason from a dropdown list with the following options;
      • The business firm in UAE no longer produces any taxable supplies
  • The business produces taxable supplies, but their value is below the voluntary threshold (AED 187,500)
  • The business produces taxable supplies and their value exceeds the voluntary threshold but not the mandatory threshold (AED 375,500)
  • others (specify your reason)
  1. Provide the exact date from which you are eligible for the VAT Deregistration in Dubai. It depends on your reason.
  • If your firm no longer produces any taxable supplies then the deregistration requirement will start from the day on which you stopped producing the taxable supplies
  • If your business produces taxable supplies, but their value is below the voluntary threshold, then the deregistration requirement starts from the day on which your supplies fall under the voluntary registration limit
  • If your business produces taxable supplies but their value is below the mandatory threshold and above the voluntary threshold, then you can decide the date up to your preference
  • If the reason is none of the above, you must provide the date according to the reason you provided
  1. Provide relevant documents to support the details you entered. Click on ‘Choose Files’ and select the documents to submit.
  2. Before submitting your application carefully review the authorized signatory, read the declaration and check the relevant boxes
  3. Click on the ‘Submit ‘button to complete the deregistration process.

After this, it will take some time to process and approve your application. The progress of your application will be displayed on the dashboard and will receive notifications on time via SMS or email. Your application will go through the following statuses;

Pending – It shows that the application is awaiting processing approval from the FTA and you may be asked for any additional information.

Submitted – FTA will ask for additional information

Pre-approved – There are some pending liabilities that you should pay off and soon your application will be approved

Deregistered – Approved and no liabilities to be paid off.

According to VAT Deregistration in Dubai with FTA, You should keep in mind that your application will not be approved by FTA if any outstanding liabilities or penalties remain unpaid.

The time limit for the submission of VAT Deregistration in Dubai application; 

You should submit your deregistration form after twenty business days from the date on which you were to deregister, or else you need to pay a fine of AED 10,000.

How MAATS help you in VAT Deregistration in Dubai

It is essential to know when and why you should apply for VAT Deregistration. With our expert tax agents in the UAE, we provide you with all the necessary information and guidance to complete the VAT Deregistration process easily. We have qualified accounting firms in UAE and professionals in our team to help you with various services related to tax like VAT registration, VAT Deregistration, VAT return filing and VAT refund etc. We help our clients to prevent penalties and unwanted stress.

Frequently Asked Questions

Failure to deregister when required can lead to penalties, as the business will still be considered VAT-registered and subject to VAT filing obligations.
Once deregistered, the business will no longer be required to submit VAT returns, but any outstanding VAT liabilities must still be paid to the FTA.
You must file VAT returns up until the date of deregistration, ensuring all VAT liabilities are settled before completing the process.
If you have outstanding VAT credits or input tax, you may be able to claim a VAT refund before completing the deregistration process.
Yes, businesses can continue making VAT-exempt supplies, but once deregistered, they will no longer charge VAT on any supplies.
Yes, a business that was deregistered can apply for VAT registration again if its taxable supplies exceed the registration threshold in the future.
After deregistration, you will no longer issue VAT invoices, and any previously issued invoices will need to reflect the correct VAT status.
Yes, if your business is dormant and not making any taxable supplies, you can apply for VAT deregistration.
If you temporarily stop trading and your taxable supplies fall below the threshold, you can apply for VAT deregistration until you resume business activities.
Incorrect VAT deregistration, such as failing to properly declare taxable supplies or liabilities, may result in fines and penalties imposed by the FTA.
Any outstanding VAT liabilities must be cleared before deregistration is granted. If not, the FTA may deny the deregistration request.