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VAT / TRN De-Registration

A registered taxable person is required to comply with the required rules and processes under VAT. Invoices have to be issued in the specified format, returns need to be filed on a timely basis and the tax due needs to be paid by the due date. The VAT Law provides registered taxable persons with the facility to cancel their VAT registration. Let us understand the circumstances in which a person can de-register under VAT and the process to be followed for the same.

The Registrant must apply to the Authority for de-registration in any of the followings occurrence:
1) Business No Longer Making taxable Supplies - The Registrant stops making supplies referred and does not expect to make any such supplies over the next 12-month period.
2) Business Making Taxable Supplies but below Voluntary Threshold - The 12 months have elapsed since the date of registration,The value of supplies made, or taxable expenses incurred, by the Registrant over the previous 12-months is less than the Voluntary Registration Threshold and the taxable supplies or expenses, expected over the next 30 days, are not expected to exceed the Voluntary Registration Threshold.
3) Business Making Taxable Supplies below Mandatory Threshold but Above Voluntary Threshold -  After the 12 months have elapsed since the date of registration if you were registered on a voluntary basis, The Registrant still making Taxable Supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold and the taxable supplies or expenses,expected over the next 30 days, are not expected to exceed the Mandatory Registration Threshold.

The date from which the Taxable Person is required or eligible to de-register depends on above basis of the de-registration:
The Basis of Deregistration

Business is no longer making taxable supplies.
Business is making taxable supplies, but below the Voluntary Registration Threshold.
Business is making taxable supplies, above the Voluntary Threshold, but below the Mandatory Registration Threshold.

The date eligible to de-register 

The date starting from which the Taxable Person stopped making taxable supplies.
The date starting from which the value of the Taxable Person's taxable supplies no longer exceed the Voluntary Registration Threshold.
A preferred de-registration date.
A relevant date you consider you are required to de-register

If the deregistration application is reviwed and approved by the Authority, they may give a Last VAT Return Period for filing to the applicant. Then, the deregistration is effect from the last day of the Tax Period during which the Registrant has met the conditions for deregistration or from such other date determined by the Authority as the ending of Last VAT return period. 
A Registrant shall not be deregistered unless he has paid all Tax and Administrative Penalties due and filed all Tax Returns as due.
Deregistration does not exempt the Person from his obligations and liabilities that were applicable under the Decree-Law while he was still a Registrant. The Admistrative Penalty of AED 10,000 will be imposed by the Authority for the failure of the Registrant to submit a deregistration application within the time frame specified above in each basis of deregistration.
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