VAT Deregistration

Vat Deregistration In Dubai

Since the implementation of VAT in UAE, majority of businesses are aware of the importance of VAT registration, but minority are aware of the crucial process of VAT deregistration and its importance in preventing your business from being fined. Under some circumstances, companies should apply for VAT deregistration within 20 days of being eligible for VAT deregistration not to be subjected to a fine of AED 10,000.

Who is eligible for VAT in UAE?

Mandatory

The registered businesses become eligible for mandatory VAT deregistration when the taxable supplies are less than the voluntary registration threshold limit.

Voluntarily

The businesses can opt for voluntary VAT deregistration if the taxable supplies for the past 12 months do not exceed the mandatory VAT registration threshold of AED 375, 000 but are above the voluntary registration threshold of AED 187,500.


Deregistration for VAT Groups

The eligibility for the VAT deregistration of VAT groups is the same as the criteria for the individual taxable entities. However, certain other criteria also apply to the VAT groups for applying for deregistration:

  • The VAT deregistration will be approved if the group no longer meets the conditions to be considered as a VAT group
  • The group could be granted deregistration if the constituent member companies are no longer financially associated with the group
  • Deregistration will be approved if the FTA anticipates the tax status of the group may lead to tax evasion

Why MHM ?

MHM has been a leader player in providing Taxation services for corporates. Our team of VAT experts will support you to the VAT process and frame it in the most beneficial way to reduce your cash outflow during tax payment stage, through delivering a wide range of services in VAT registration such as:

  • Consultation
  • VAT Registration and VAT Group Registration
  • VAT Compliance and Control
  • VAT Filing and Payment
  • Data Record and Management
  • Accounting
Company Presentation
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Frequently Asked Questions


Any business can deregister from VAT at any time if it expects turnover in the next 12 months will be less than the deregistration threshold, AED 187,500 or the business stops making taxable supplies

Voluntarily deregistration from VAT can only take effect from current and future dates.

VAT deregistration is an online process that takes places through the FTA Portal.