VAT De-Registration
De-registering your Tax Registration Number (TRN) is as important a registering for VAT. The Federal Tax Authority (FTA) has made it mandatory to de-register for VAT if the business meets certain criteria.
Administrative penalties have been imposed if the de-registration procedure isn’t carried out or has been delayed.
When to De-register for VAT?
A taxable person can be deregistered under 2 factors:
Mandatory De-registration
- Conditions
The business has stopped making taxable supplies.
If the turnover did not exceed AED 187,500 in the 12 months after registering with the FTA.
- Timeframe to avoid penalty
20 working days within the period any of above conditions are triggered.
Voluntary De-registration
- Conditions
The business has not made supplies or expenses above the threshold of AED 375,000 in the past 12 calendar months
The business has not made supplies or expenses above the threshold of AED 375,000 in the past 12 calendar months
- Timeframe to avoid penalty
Since this is a voluntary deregistration, there is no time-frame involved.
Things to do before De-registering
Submit final VAT Return
Clear all outstanding liabilities
Make sure condition to de-register is satisfied
Timely de-registration to avoid penalty
How much is the penalty?
The penalty for late mandatory de-registration of VAT is AED 10,000.
Service Spectrum
Flyingcolour® Tax Consultant and J N J Auditing LLC provide a complete range of services for UK businesses establishing or operating in Dubai, including accounting and bookkeeping, tax advisory, auditing, Economic Substance Regulation (ESR) compliance, Anti-Money Laundering (AML) compliance, tax residency certificate assistance, payroll management, excise tax services, other regulatory compliance, and CFO support. Our team of experienced professionals offers comprehensive, cost-effective packages customised to meet the specific needs of UK entrepreneurs and companies in the UAE.