What is VAT De-registration ?

Like registration, de-registration also an important procedure to be understand.

Tax De-registration means de-activation of the registration and the VAT number of the taxable person. A taxable person registered under VAT can apply for Tax de-registration or done by the FTA on finding that a person meets the conditions for de-registration.

When you should do De- registration?

Like VAT registration, De-registration can also classified in to two. Mandatory De-registration, and Voluntary De-registration. VAT De-registration is mandatory for a Taxable Person in any of the following circumstances:

1. If a Taxable person stop making taxable supplies;

Then the Taxable person should apply for de-registration with in 20 days,

from the date starting from which the Taxable Person stopped making taxable supplies.

2. If a Taxable person making taxable supplies but the value in the previous 12 months is less than the Voluntary Registration Threshold ie below AED 187,500

Then the Taxable person should apply for de-registration with in 20 days,

from the date starting from which the value of the Taxable Person’s taxable supplies no longer exceed the Voluntary Registration Threshold, ie below AED 187,500

Please note, if the date of submission of this de-registration form is more than 20 business days from the date the Taxable Person is required to de-register then you will be subject to a late de-registration penalty of AED 10,000.

A Taxable person may apply for a Voluntary De-registration:

1. If a Taxable person making taxable supplies, but the value in the previous 12 months was less than the Mandatory Registration Threshold, ie below AED 375,000, and
2. If the taxable person registered on a voluntary basis

How to apply for a de-registration?

The tax registrant can apply for VAT De-registration by login to the accounts through FTA Portal.

The de-registration application form can be completed by the following steps:

• Select the reason from the dropdown list the basis you are de-registering for VAT,
• Provide the effective date of de registration,
• Upload all the relevant supporting documents for de-registration by clicking on ‘Choose Files’
• Update the email credentials for authorized signatory,
• Confirm all the four declarations by ticking the check box next to each.
• Once you have completed the above, and review the same, click on the ‘Submit’ button to proceed.

Once you submit the application, the status of your application form will amend to “pending”. You may check your application status in the dashboard from time to time. And also submit the vat reruns from time to time and pay the tax until you get the approval. Otherwise additional penalty will be charges for late submission.

The FTA shall approve or reject the request and notify the registrant accordingly. Further, the FTA may ask you to provide additional supporting documents. Once the FTA confirms acceptance of your de-registration application form, you will be notified of the pre-approval. The status of your de-registration in the dashboard will changed to ‘Pre-Approved’.

Please note, FTA will not de-register the Taxable person’s account, unless you have paid all Tax and Administrative Penalties due and filed all Tax Returns including any outstanding returns as well as the final tax return.

The Taxable Person’s account will be de-registered once the FTA approves the de-registration application and there are no outstanding liabilities.

HAAB Accounting Consultancy as one of the top VAT Consultancy firm in Abu Dhabi, UAE,  have well experienced Tax professionals also. Surely we can advise you on VAT De-registration and on all VAT related matters as well.