Our VAT deregistration services ensure that eligible businesses successfully cancel their VAT registration in the respective country. VAT deregistration, also referred to as cancellation or termination of VAT registration, is typically pursued when a business decides to cease its VAT registration with the Tax Authority. This process is conducted online and facilitates the deregistration from taxation.
Types of VAT Deregistration
There are two categories of VAT deregistration services, each chosen based on different circumstances. These categories are:
1. Mandatory VAT Deregistration:
A taxable person is required to apply for deregistration within 30 days if any of the following conditions apply:
a. They cease economic activities.
b. The business stops making taxable supplies.
c. They are no longer recognized as a legal entity (e.g., the company closes).
2. Voluntary VAT Deregistration:
Taxpayers may choose voluntary VAT deregistration if:
a. The value of their taxable sales in the past 12 months falls between the voluntary and mandatory thresholds.
b. The projected value of their taxable sales in the next 12 months (including the current month) also falls between the voluntary and mandatory thresholds.
VAT Deregistration Procedure
Prepare the Required Documents: Gather all necessary documents for VAT deregistration, including the VAT Deregistration Application Form, original Emirates ID and passport of the authorized signatory, a letter requesting VAT deregistration and stating reasons, evidence supporting the deregistration reasons, VAT tax invoices and credit notes, financial statements, and a customs registration cancellation certificate if applicable.
Settle Any Outstanding VAT Liability: Ensure all outstanding VAT tax invoices and credit notes are settled before submitting the deregistration application.
Submit the VAT Deregistration Application: Complete the VAT Deregistration Application Form and submit it along with all required documents to the Federal Tax Authority (FTA) through the EmaraTax portal.
Await Approval: The FTA will review the application and may request additional information if needed. Upon approval, the FTA will issue a VAT deregistration certificate.
Update Records and Systems: Update your business records and systems to reflect the VAT deregistration. This may involve adjusting accounting systems and invoices to indicate that your business is no longer VAT registered.
Time Frame for VAT De-registration
A registrant must apply for VAT deregistration within 20 business days from the occurrence of the above-mentioned events. Registrants can easily apply for VAT deregistration by accessing their relevant tax authority portals. Additionally, Companies that are getting closed must have a company liquidation letter from the government authorities to apply for VAT Deregistration.
Businesses need to submit a final and last VAT return filing after getting the pre approval of VAT deregistration application. Once the last VAT return filing has been submitted and all the liabilities are cleared, tax authority will cancel the VAT registration.
Details to be submitted for VAT registration cancellation
An application to cancel VAT registration should be submitted to the authority on the prescribed form and include the following information:
- The name of the registrant
- The registrant’s tax registration number
- Reasons for and evidence of meeting the de-registration conditions
- Date of meeting the cancellation condition
- Details of the value of supplies in the last 12 months and an estimate of the value of supplies in the next 12 months.
- Details of the value of expenses in the last 12 months and an estimate of the value of the expenses in the next 12 months.
- Any other information determined by the authority.
