BINJOY Auditors L.L.C

VAT De-Registration

VAT De-Registration in UAE 

What is VAT De-Registration?
VAT de-registration, also referred to as VAT cancellation or termination, becomes necessary when a business decides to terminate its VAT registration with the Tax Authority. This procedure is conducted online and is crucial, mirroring the significance of VAT registration itself. Entities can select from two categories of VAT de-registration services: mandatory de-registration and voluntary de-registration.

Circumstances for VAT De-Registration

Mandatory De-Registration 

An entity must promptly initiate deregistration within 30 days under the following circumstances: 

  • Ceasing Economic Activities Entirely: When a business ceases all its economic activities.
  • Halting the Provision of Taxable Supplies: When a business stops supplying taxable goods and services.
  • No Longer Maintaining Legal Entity Status (Entity Closure): When the business is closed down or dissolved.
Voluntary De-Registration

A taxable entity should consider applying for voluntary deregistration under the following circumstances:

  • Taxable Sales Fall Below the Threshold: If their taxable sales over the previous 12 months fall within the range of the voluntary threshold and mandatory threshold.
  • Projected Taxable Sales Fall Below the Threshold: If their projected taxable sales for the next 12 months (including the current month) are expected to fall within the range of the voluntary threshold and mandatory threshold.

If an individual holds a Tax Registration Number (TRN) and the total value of taxable supplies made over a continuous 12-month period falls below the specified threshold, with no expectation of surpassing it within the next 30 days, they are required to submit a VAT deregistration application to the Federal Tax Authority in the UAE.

Importance of Timely VAT De-Registration 

Understanding the regulations and procedures for VAT cancellation in the UAE is crucial for businesses, as failure to apply within the stipulated timeframe can result in administrative penalties being imposed.

Contact Us

We recognize the unique requirements of every business, customized to suit their specific industry. Contact us today to learn more about VAT De-registration in the UAE and explore tailored solutions for your business!