UAE VAT Deregistration Process and Fine for Deregistration

UAE VAT Deregistration Process and Fine

Who

The Business and Individuals who are registered Under UAE FTA can Deregister UAE Tax Registration Number (TRN).

When VAT Deregistration

Business ‘or’ Individuals required to Deregister below circumstances: 

  • Stops making taxable supplies
  • Does not expect any taxable supply over the next 12 months
  • Preceding 12-month taxable supply less than AED. 187,500/-

Time of VAT Deregistration

Registrant may apply for VAT Deregistration within 20 Business working days from the occurrence of any above circumstances.

UAE VAT Deregistration Process

FTA VAT Deregistration is an online process.

  1. Sign in to your FTA VAT portal
  2. On the dashboard, against the VAT registration, click on the ‘De-Register’ button
  3. Taxable Person Details are pre-populated in the de-registration application
  4. Reasons for VAT de-registration. Select from the drop-down list on what basis you are de-registering for VAT
  5. The effective date from which the Taxable Person is required or eligible to de-register depends based on the de-registration
  6. Upload all the relevant supporting documents by clicking on ‘Choose Files
  7. Review and confirm the authorized signatory and declaration section of the application form before submission & Submit
  8. The applicant will receive an SMS from FTA
  9. FTA Analysis application, collect pending balances if any, and approve for Deregistration (VAT registration will be canceled).

UAE VAT Deregistration Fines & Penalties

  • The late VAT Deregistration penalty will be AED 10,000.
  • The person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration.
  • Companies that are getting closed must have a company liquidation letter from the government authorities to apply for VAT Deregistration.

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