VAT Deregistration

VAT Deregistration
by Aswani

VAT Deregistration in Abu Dhabi

While VAT registration is essential for many businesses in Abu Dhabi, deregistering with the FTA can be equally important when circumstances change. Businesses that cease providing taxable supplies or close operations entirely should deregister to avoid unnecessary compliance burdens and potential penalties.

HLB Abu Dhabi’s VAT consulting experts can help you determine eligibility, prepare the application, and navigate the deregistration process, ensuring a smooth and compliant transition.

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Deregistering for VAT

As the Federal Tax Authority holds the authority to approve or decline requests for VAT deregistration, ensuring your application stands a good chance of approval is crucial. This is where our assistance becomes invaluable. Our certified tax consultants will manage the entire VAT deregistration process for your business.

We provide comprehensive guidance and support to facilitate the completion of the procedure through our licensed tax agents in Abu Dhabi, who also offer a range of VAT-related services in the UAE.

What is VAT Deregistration?

VAT deregistration involves registered businesses terminating their VAT registration. When a taxable entity ceases operations or no longer requires VAT registration, the deregistration process becomes necessary. Taxable businesses must apply for VAT deregistration, and upon approval of the request and submission of all necessary documentation, the FTA will cancel the registration.

VAT deregistration is equally significant as VAT registration, and businesses should be aware of when and under what circumstances they need to apply for VAT deregistration in the UAE. Failure to do so promptly may result in substantial penalties.

Who Can Deregister?

There are two main scenarios for VAT deregistration:

  • Voluntary Deregistration: Businesses can choose to deregister voluntarily if:
    • They no longer deal in taxable supplies (goods and services).
    • Their taxable supplies for the past year and the next 30 days fall below the voluntary registration threshold of AED 187,500 (but are still above the mandatory threshold of AED 375,000).
  • Mandatory Deregistration: The FTA may deregister businesses that:
    • No longer have taxable supplies (both goods and services).
    • Have been voluntarily registered for VAT for 12 consecutive months, and their taxable supplies fall below the voluntary registration threshold.

Note: Businesses meeting the criteria for deregistration must apply within 20 days. Failing to file for deregistration within this timeframe set by the FTA can result in penalties.

How HLB Abu Dhabi Can Help?

Navigating VAT deregistration can involve complexities. HLB Abu Dhabi’s team of VAT consultants can assist you in determining your eligibility, preparing the application, and ensuring a smooth and compliant deregistration process.

Contact us today to discuss your specific situation and learn how we can help.

Call or Email us: +971 50 742 7124 or abudhabi@hlbhamt.com

Frequently Asked Questions (FAQ’s)

  1. Do I need to deregister for VAT in Abu Dhabi?

    You may need to deregister for VAT if your business no longer meets the registration requirements. This includes:

    • Cessation of taxable supplies: If your business no longer sells or produces goods and services subject to VAT, deregistration is possible.
    • Company closure: Businesses shutting down operations entirely should deregister for VAT.
    • Falling below the voluntary threshold: If your taxable supplies fall below AED 187,500 for a year and the next 30 days (but are still above AED 375,000), you can voluntarily deregister.

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  2. What is the difference between voluntary and mandatory deregistration?

    • Voluntary deregistration: You choose to deregister due to the reasons mentioned above.
    • Mandatory deregistration: The FTA deregisters you if you no longer have taxable supplies and have been voluntarily registered for 12 months with taxable supplies below the voluntary threshold.
  3. What happens if I don’t deregister on time?

    Failing to deregister within 20 days of meeting the criteria can result in penalties from the FTA.

  4. How can HLB Abu Dhabi help with VAT deregistration?

    Our VAT consultants can:

    • Assess your eligibility.
    • Prepare the deregistration application.
    • Guide you through the process to ensure compliance.
  5. What are the benefits of using HLB Abu Dhabi for VAT Deregistration?

    • Save time and resources by letting us handle the process.
    • Ensure a smooth and compliant deregistration.
    • Minimize the risk of penalties.