VAT Deregistration

What is VAT Deregistration?

VAT deregistration in the UAE is the formal process of cancelling a business’s VAT registration when it is no longer eligible or required to remain registered. This is done through the FTA’s EmaraTax portal and must follow official procedures to avoid penalties.

Types of VAT Deregistration

There are two main categories of VAT deregistration services in the UAE:

• Mandatory VAT Deregistration
  Required when a business no longer meets the mandatory VAT registration criteria.
• Voluntary VAT Deregistration
  Applicable when a business falls below the voluntary registration threshold and chooses to opt out of the VAT system.
  
  

When Should You Apply for VAT Deregistration?

You must apply for mandatory VAT deregistration within the legal timeframe if:

• Your business has ceased taxable activities.
• The company no longer makes taxable supplies.
• Your business has closed and is no longer legally active.

You may apply for voluntary VAT deregistration if: Your taxable turnover over the past or upcoming 12 months falls below the voluntary registration threshold.

VAT Deregistration Procedure in UAE

Our team at Noraal simplifies the VAT deregistration process with the following steps:

1. Document Preparation
   Collect all required documents, such as your VAT deregistration application, identification papers, business closure proof (if applicable), and financial records.
2. Settle Outstanding VAT Liabilities
   Ensure all VAT returns are filed and any pending VAT payments are cleared before applying.
3. Submit VAT Deregistration Application
   Submit your application through the Federal Tax Authority (FTA) portal, including supporting documents and justifications.
4. Review and Approval by FTA
   The FTA will review your application and may request further documentation before approving the cancellation.
5. Final VAT Return Filing
   Once approved, a final VAT return must be submitted and accepted to complete the deregistration process.
6. Update Internal Systems
   Adjust all records, invoices, and accounting systems to reflect that your business is no longer VAT-registered.
   
   

Important Notes About VAT Deregistration

• Applications must be submitted within the timeframe mandated by the FTA to avoid penalties.
• For business closures, an official liquidation letter must be submitted.
• The FTA may request information such as:
  • Tax registration number
  • Value of supplies and expenses
  • Reasons and evidence for deregistration
  • Estimated future transactions
    
    

Why VAT Deregistration Matters

Understanding and acting on VAT deregistration is just as important as registration. Failing to deregister when required may result in fines and compliance issues. Noraal’s VAT deregistration services in UAE ensure you meet all legal obligations with accuracy and ease.