Fourth: VAT deregistration services in the UAE

What are the cases for VAT deregistration in the UAE?

VAT deregistration occurs in two main situations:

• When the taxpayer ceases to make taxable supplies or ceases their economic activity entirely.

• If the value of the taxpayer's taxable supplies or expenses over 12 consecutive months is less than the voluntary registration threshold (AED 187,500) and is expected not to exceed this threshold within the next 30 days.

Deregistration is used to avoid unnecessary tax liabilities, especially if the company's activity changes or it decides to cease operations.

VAT Deregistration Conditions and Requirements

• Submit a deregistration application within 20 working days from the date of cessation of activity or the fulfillment of the condition.

• Settle all outstanding tax liabilities, including payment of all late taxes and penalties.

• Submit a final tax return with all taxable supplies registered up to the date of deregistration.

• The taxpayer may be required to provide documentation proving the cessation of activity or the decline in supplies.

Failure to submit the cancellation request within the specified deadline will subject the taxpayer to a fine of up to AED 10,000.

How our consultants can help you deregister

1. Review the calculation of the collected VAT

2. Review the accuracy of the calculation of the tax paid in the returns

3. Review the tax dues paid with the return

4. Complete the VAT deregistration form.

5. Submit the application with the required documents.

6. Follow up on the application status until official approval is issued.