One Stop VAT De-Registration Solution Provider in UAE

Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration. It means de-activation of the registration and the VAT number of the taxable person. Tax de-registration can be applied for by a person registered under VAT or done by the FTA on finding that a person meets the conditions for de-registration.

A person registered under VAT can apply for Tax De-registration in the following 2 cases:

• The person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period OR
• The person’s taxable supplies or taxable expenses incurred over a period of 12 consecutive months is less than the voluntary registration threshold (AED 187,500) and he/she does not anticipate to cross this threshold in the next 30 days
• Note that a person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration..

The FTA can cancel a person’s registration if it is found that the registrant satisfies either of the 2 conditions listed above for de-registration. This is called mandatory tax de-registration. Hence, VAT de-registration is a welcome option for persons who have registered under VAT but do not continue to make supplies requiring registration. Such persons do not need to continue being registrants and can apply for tax de-registration on satisfying the applicable conditions.

Things to cross-verify

• They should have a valid cancelled trade license from the relevant authority.
• There should be no penalties or fines reflected in the profile (the file cannot be accepted if fines exist).
• VAT filing must be completed up to the last applicable filing period.
• The registrant should maintain a proper file breakup, including sales, expenses, zero-rated supplies, and VAT-related expenses, as they were VAT registered.
• A registrant must apply for VAT deregistration within 21 days from the occurrence of the above-mentioned event; otherwise, a late deregistration penalty of AED 10,000 will apply.

Required documents:

• Cancelled Trade License
• FTA Login credentials
• Proper file breakup

Things to cross-verify

• There should be no penalties or fines on the profile (the file cannot be accepted if any fines exist).
• VAT filing must be completed up to the last filing period.
• The registrant should maintain proper file breakup, including sales, expenses, and zero-rated supplies, as they were VAT registered.

Required documents:

• FTA Login credentials
• Proper file breakup

Things to Cross-Verify:

• There should be no penalties or fines on the profile (the file cannot be accepted if any fines exist).
• VAT filing must be completed up to the last filing period.
• The registrant should maintain proper file breakup, including sales, expenses, and zero-rated supplies, as they were VAT registered.
• A registrant must apply for VAT deregistration within 21 business days from the occurrence of a legal form amendment; otherwise, a late deregistration penalty of AED 10,000 will apply.

Required Documents:

• Old trade license
• New trade license
• Updated Memorandum of Association (MOA)
• Passport copy and Emirates ID as per the new license
• Updated mobile number and email ID (if changes are required)
• Office address details
• Proper file breakup (sales, expenses, and zero-rated supplies)
• FTA login credentials

Initially, we need to apply for an entity type amendment in the FTA portal. If the amendment is approved, there is no need to apply for VAT de-registration. However, if the amendment is rejected by the FTA, VAT de-registration will be required.

Things to Cross-Verify:

• There should be no penalties or fines on the profile (the file cannot be accepted if any fines exist).
• VAT filing must be completed up to the last filing period.
• The registrant should maintain proper file breakup, including sales, expenses, and zero-rated supplies, as they were VAT registered.
• The client will be subject to a late VAT de-registration penalty of AED 10,000, if applicable.

Required Documents:

• FTA login credentials
• Proper file breakup (sales, expenses, and zero-rated supplies)

Things to Cross-Verify:

• There should be no penalties or fines on the profile (the file cannot be accepted if any fines exist).
• VAT filing must be completed up to the last filing period.
• The registrant should maintain proper file breakup, including sales, expenses, and zero-rated supplies, as they were VAT registered.
• A registrant must apply for VAT deregistration within 21 business days from the occurrence of an ownership change; otherwise, a late deregistration penalty of AED 10,000 will apply.

Required Documents:

• FTA login credentials
• Old trade license
• Passport copy and Emirates ID as per the new license
• Updated mobile number and email ID (if changes are required)
• Office address details
• Proper file breakup (sales, expenses, and zero-rated supplies)

Here, we need to submit a request letter to the FTA mentioning the duplicate TRN number and requesting its VAT deregistration. Once the process is completed, the FTA will issue the VAT de-registration certificate.