ICB makes VAT deregistration in the UAE easy and efficient.

If you’re registered for VAT, you can request VAT deregistration in the UAE, or the FTA may initiate it if you meet the criteria. ICB will make sure all the necessary steps for deregistration are taken care of, and we’re here to assist you with the process.

What is VAT deregistration in the UAE?

VAT deregistration in the UAE is a process you can do on the internet. If you’re a businessperson registered with the Federal Tax Authority (FTA) in the UAE, there are two ways to stop being registered for VAT:

• If your total income in the year after you register with the FTA is less than AED 187,500, you should apply for VAT deregistration.
• If your company stops making taxable sales, you need to request VAT deregistration.

When should you consider VAT deregistration?

If you voluntarily registered for tax on January 1, 2020, and by December 31, 2020, your business didn’t make taxable sales totaling 187,500 AED within the past 12 months, you need to carefully check if your taxable sales will go beyond the voluntary threshold (AED 187,500) in the next 30 days (by January 30, 2021). If they do, you can apply for VAT deregistration in the following 20 days.

VAT deregistration process.

The process for VAT deregistration is straightforward. Let’s explore the steps to deregister your VAT in a simple manner:

1. Visit the FTA Website: Start by going to the Federal Tax Authority’s (FTA) website. Look for the deregistration’ option on the main page.
2. Complete the VAT Deregistration Application: Locate the VAT Deregistration application on the website and fill it out with the required information.
3. Submit Your Application: Send the completed application to the authorities for review and approval of VAT Deregistration.
4. Check Status: After submitting the application, the FTA will assess it. If they approve the VAT deregistration, the status will be updated to ‘pre-approved.’
5. Finalize VAT Return Filing: Following the pre-approval, companies need to file their last VAT Return. After that, clear any outstanding obligations to complete the VAT Deregistration process.
6. Penalties: If a registrant fails to submit a deregistration application within the specified timeframe, the penalty is set at 1,000, with a maximum of 10,000 added each month thereafter. Cabinet Decision No. 49 (2021), issued on April 28, 2021, revised certain aspects of Cabinet Decision No. 40 (2017) on Administrative Penalties for Violations of UAE Tax Laws.

We help you smoothly go through the process of De-registration without any hassle. We check your financial situation and various factors to see if you qualify for De-registration according to the law. If you have any questions, Please go here if you have any inquiries. Call for action.

De-registration in the UAE.

If the companies in a group stop making taxable sales, the group can be deregistered. If the group businesses do make taxable sales but the total value in the last 12 months is less than AED 187,500 (the Voluntary Registration Threshold), the group can also be deregistered. Deregistration is also possible if the group’s taxable sales were below AED 375,000 (the Compulsory Registration Threshold) in the previous 12 months.

Here are the situations that make tax groups eligible for deregistration:

• Entities that were once considered tax groups no longer meet the criteria for that classification.
• A registered entity is no longer a member of the group.
• The FTA (Federal Tax Authority) initiates the deregistration of a tax group on its own.

Procedure for VAT Group De-registration.

• Initiation of the tax group de-registration process is done through the official FTA website, where the initial VAT registration took place.
• Within the dashboard, adjacent to the Tax Group registration section, an option for de-registration is available.
• Specify the reason for de-registering the tax group and indicate the deadline for the de-registration.
• Ensure that all necessary documentation and information are included when submitting the application for tax group de-registration.
• Once the application is submitted, applicants need to await approval from the FTA. Following the completion of the review, the FTA will communicate the outcome of the application.

The entire de-registration process can be managed by ICB, recognized tax agents in Dubai, acting on behalf of the member firms.