Most businesses in the UAE that meet the requirements for VAT registration have already registered by now. Registered businesses must follow VAT rules like issuing proper invoices, filing returns on time, and paying taxes when due. The VAT law allows registered businesses to cancel their VAT registration under certain conditions. Let’s look at when a business can deregister for VAT and the process involved.

What is VAT Deregistration?

Tax deregistration is the process of canceling your VAT registration uae and VAT number as a registered taxpayer. Both businesses registered under VAT and the Federal Tax Authority trn verification (FTA) can initiate deregistration if the business meets deregistration requirements.

When Can a Business Apply for VAT Deregistration in the UAE?

A registered business can apply for VAT deregistration in two cases:

The business stops making taxable supplies and does not expect to make any for the next 12 months.

The business’s taxable supplies or expenses over 12 consecutive months are below the voluntary registration threshold (AED 187,500) and are not expected to exceed the threshold in the next 30 days.

Note that a business that voluntarily registered for VAT dubai cannot deregister for 12 months after initial registration.

When Can the FTA Cancel a VAT Registration?

The FTA online can cancel a business’s VAT registration if it finds the business meets either of the two deregistration conditions above. This is called mandatory deregistration.

In summary, VAT deregistration is an option for registered businesses that no longer make taxable supplies requiring registration. Such businesses can apply to deregister when they meet the conditions rather than remaining registered.

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