What is VAT De-Registration?
VAT deregistration is a provision for registered taxable persons to cancel VAT registration. This means invalidation of registration and VAT number of taxable person. Tax deregistration can be done by an FTA if a person registered with VAT applies or if the conditions for deregistration are met.
When can I apply for VAT deregistration in the United Arab Emirates?
VAT registered persons can apply for tax deregistration in two cases:
- The person has stopped the taxable supply and does not expect to provide the taxable supply over the next 12 months. Or
- Individual taxable objects or taxable expenses incurred over 12 consecutive months are below the self-registration threshold (AED 187,500) and are not expected to exceed this threshold within the next 30 days.
When can an FTA in the United Arab Emirates be deregistered?
- The FTA may cancel an individual’s registration if the registrant is found to meet either of the above two deregistration conditions. This is called compulsory tax deregistration.
- Individual taxable objects or taxable expenses incurred over 12 consecutive months are below the self-registration threshold (AED 187,500) and are not expected to exceed this threshold within the next 30 days.