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VAT Deregistration Services In UAE
In Dubai, UAE, which is primarily tax-free, the arrival of VAT in Dubai brings both many benefits and a lot of new problems. Deregistering for VAT is just as important as registering for VAT, and companies in the UAE should know when and how to apply for VAT deregistration.
Taxable businesses in the UAE can ask the FTA to cancel their VAT registrations for several reasons, like when they stop making taxable goods or doing business. In these situations, it is important for companies to file for VAT deregistration. On the other hand, VAT-registered businesses need to know when and how to cancel their VAT registration. A reputable VAT consulting company like Highmark accountant will help in these situations.
What is Deregistration from VAT?
VAT de-registration in UAE lets a taxable person or company cancel their VAT registration and suspend their Tax Registration Number (TRN). You can cancel your VAT registration online, just like you can do other things on the FTA e-services site. Businesses can only get out of VAT if registered with the Federal Tax Authority. Highmark Accountants can help you get your business off the FTA. We will make sure that the process of deregistering from VAT is done without any VAT fees from FTA. The fine for not cancelling your VAT registration on time is AED 10,000.
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What is the Process of Applying for FTA VAT Deregistration UAE?
Businesses can unregister from VAT by logging into their VAT websites and following the steps below:
- Step 1: Go to your FTA VAT site and sign in.
- Step 2: Click the “De-Register” button next to the “VAT Registration” on the website.
- Step 3: Information about the taxable person is automatically filled in on the deregistration form.
- Step 4: Explain why you are dropping out of VAT. Choose from the drop-down list why you want to stop paying VAT.
- The business isn’t making any taxable goods anymore.
- A business that makes taxed sales above the Voluntary Threshold but below the Mandatory Threshold
- If you chose “other,” please explain why.
- Step 5: Depending on the type of deregistration, the Taxable person must tell you the date that the deregistration takes effect.
- Step 6: Click “Choose files” and then “Upload” to send the complete important supporting documents.
- Step 7: Review and confirm the application form’s authorized representative and declaration part before confirming submission.
- After applying for VAT Deregistration in UAE through the FTA portal, FTA will review the application. If they accept the VAT Deregistration, the status will change to “Pre-Approved.” After that, the business will have to file a final VAT Return. After the last VAT Return, the company must pay off all its remaining debts to finish the VAT Deregistration process.
Who needs to deregister for VAT in the UAE?
A business or person registered for VAT can only apply for VAT Deregistration in the following situations:
- A business or person must apply for VAT De-registration if they stop making taxable sales and don’t plan to make any more in the next 12 months.
- If the business or person is still making taxable sales, but the total amount in the last 12 calendar months is less than the Voluntary Registration Threshold (AED 187,500), they must apply for VAT De-registration.
- If the business or person is still making taxable supplies, but the total value of those supplies in the last 12 months was less than the Mandatory Registration Threshold (AED 375,000), and 12 months have passed since the date of registration (if you registered voluntarily), you must apply for VAT De-registration.
Important: A person who chose to sign up for VAT plans on their own cannot apply to get out of VAT the year after they signed up. AED 10,000 is the fine for not cancelling your VAT registration on time.
VAT Deregistration In UAE
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How do I Send a VAT Deregistration Form?
Meet all the requirements to stop paying VAT in the UAE.
Sign into your FTA Portal VAT Account.
Fill out the VAT deregistration form with your information and the reason for deregistering from VAT.
Get a text message confirmation on the number you entered.
Send the form through the computer.
After submitting the application successfully, the state will say, “pre-approved.” It won’t be “Approved” until you pay off all your debts.
You shouldn’t move forward with the VAT cancellation process if you want to keep running your business or are looking for a new investor. If this happens, the company should keep the TRN and put “0” on the tax return if they expect a good return in the next twelve months.
What is the timetable for Deregistering from VAT?
A company registered for VAT must complete an application for VAT deregistration within twenty business days of any of the above events. By going to their FTA portals, VAT Registrants can quickly send in an application to stop being VAT Registrants.
Note: If you send in this de-registration form more than 20 workdays after the date that the taxable person was supposed to deregister, you will have to pay a fine of AED 10,000.
Businesses in the UAE that have ceased operations and surrendered their licenses must obtain a letter from the appropriate government agencies confirming their liquidation before they can apply for deregistration from VAT.
Voluntary Deregistration in UAE
Article 17 says that a Registrant can’t ask to drop out of VAT within 12 months of the start of Signing up for the tax. With the optional deregistration process, a company can: When a business quits selling taxable goods or when their taxable sales and expenses in the last year and the next 30 days don’t exceed the limit for voluntary VAT registration (AED 187,500), they must deregister from VAT in the UAE. The deadline for having to stop paying VAT is 20 days. These 20 days start counting from the day that the business can no longer be charged. If you don’t send in an application within 20 days, your company will be fined. The punishment for applying late is AED 10,000.
Mandatory VAT registration in UAE
A business can continue with the required deregistration process: – If the business is no longer making AED 375,000.
Groups that don’t have to pay VAT.
The FTA will allow a group to drop its VAT registration if the registered business no longer meets the requirements to be classified as a group. The companies in the group, no longer have any financial ties to each other. If it knows the tax situation of the group as a whole, it can lead to tax fraud. If a business wants to re-register, it can fill out the registration form again and get a new VAT number.
Situations where an application shouldn’t be accepted.
The people who signed up will not lose their spots if, It fails to send in the application within 20 business days. It hasn’t paid all of the taxes and fines that are due. The Administrative Fines Cabinet Decision No. 40 of 2017 for Violating Tax Laws in the UAE stipulates that individuals or entities failing to submit their de-registration application within the timeframe specified by tax law will incur a Dh 10,000 administrative fine.
Why Highmark services in Dubai for VAT Deregistration numbers?
- Highmark accountants will help you get your business off the FTA list.
- Highmark accountants will make sure that the process of deregistering from VAT is done according to the rules and that there are no VAT fees from the FTA.
- We have tax experts all over the UAE. They can help you get off the VAT list quickly and in a skilled way.
- We will make sure that the process of unregistering is done well before the deadline.
- We also help with VAT accounting and making returns.
- If you need a VAT partner who can take care of all your VAT needs, we are ready to help you.
FAQ on VAT De Registration.
What does "deregistering from VAT in UAE" mean?
VAT deregistration in UAE is the process of canceling your value-added tax (VAT) registration with the Federal Tax Authority (FTA). This applies to businesses that no longer meet the minimum standards or have stopped doing business.
How does the process of deregistration of VAT work?
In UAE, you have to inform the FTA that you want to cancel your VAT registration before you can cancel it. This is done by sending in the necessary paperwork and Forms, as well as any taxes that are still owed. The FTA will look over the application and, if it’s okay, send out a deregistration certificate.
What do you need to do to stop paying VAT in UAE?
To stop paying VAT in the UAE, a business must do things like fall below the VAT level, stop doing taxable things, or sell itself. Also, any taxes that are still owed must be paid off before the deregistration process can begin.
Is there a charge for the deregistration of VAT?
Even though there is no special penalty for the deregistration of VAT in the UAE, it is important to follow all the rules and procedures. If you don’t, you might have to pay fines for not following tax rules.
Can I start the online process of VAT deregistration?
What papers do you need to deregister VAT in the UAE?
In UAE, businesses need to submit the deregistration form, copies of their trade licenses and the passports of their shareholders, financial records, and any other supporting documents required by the FTA.
Can I get back VAT after deregistration of VAT?
If a business stops paying VAT, it can’t get the VAT back on its costs unless they later re-register for VAT and meet the requirements.
How can I get help with deregistering for VAT?
You can call Highmark professional tax planner who specialist in VAT services if you need advice or help with deregistering for VAT in UAE.
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