VAT DEREGISTRATION
VAT Deregistration services Dubai, UAE
VAT deregistration is simply the process of terminating VAT registration. Nevertheless, in the UAE, deregistration of VAT is when a business cancels its VAT registration with the Federal Tax Authority (FTA). The reasons could be multiple for a formerly taxed corporation or an individual to elect VAT deregistration. Whys and wherefores must strictly fall under the conditions stated by the Law related to VAT. Unless the reasons are legally valid and the conditions are satisfied, the FTA might condemn the submission to VAT deregistration. Entrepreneurs (corporations or individuals) must know the guidelines and processes for VAT cancellation in UAE, as administrative consequences will be obligated upon failure to file an application within the specified timeline.
Mandatory Deregistering VAT
This applies to companies and individuals which
Stop dealing in taxable goods and services OR,
The taxable provisions or expenditures in the previous 12 months and the future 30 days do not surpass the voluntary registration threshold (i.e. AED.187,500.)
If a business or an individual who was a registered as taxpayer with FTA, fulfils to these criteria’s, it must not postpone in applying for deregistration of VAT to avoid any penalties.
The time limit:
Once an FTA registered entity becomes eligible for VAT deregistration as stated above, they have a time limit of only 20 business days from the time this eligibility occurred. Failing to apply within the given time will root to a financial loss due to fines as a penalty for late application.
Voluntary Deregistering VAT
If any company or individual has registered for VAT under the guidelines of FTA:
Is still trading with the taxable services and goods, but for the past 12 months the supplies or expenses were under the compulsory VAT registration threshold (i.e. AED. 375,000.), and if, 12 months have been conceded since the entity was registered with FTA under voluntary registration.
In such a scenario, cheapest vat consultant in dubai the entity may apply for Voluntary deregistration of VAT. There is deadline for the number of days to request for FTA deregistration.
How to Cancel Vat Registration In UAE?
When cheapest accountant near me an individual or a company has conformed for VAT deregistration, then the VAT deregistration form requires to be completed. This form is available once logged onto the FTA portal.
The resolution of FTA to accept the application for deregistration of VAT is contingent on the provided reason as well as the clearance of all:
Outstanding Taxes against the company.
Returns being filed.
Administrative penalties or fines have been paid in full.