Company Deregistration or Liquidations Services
Company Deregistration or Liquidations Services in UAE
Eligibility for Company Deregistration or Liquidations Services
As per the law defined under the regulations of FTA, the following eligibility is must apply for VAT Deregistration in UAE.
Mandatory Deregistering VAT:
- Stops dealing in taxable goods and services OR,
- The taxable supplies or expenses in the previous 12 months and the future 30 days do not exceed the voluntary registration threshold (i.e. AED.187,500.)
The time limit:
Once an FTA registered entity becomes eligible for VAT deregistration under this criterion, they have a time limit of only 20 business days from the event causing such eligibility. Failing to apply within the available time will cause financial loss due to fines as a penalty for late application.
Voluntary Deregistering VAT:
Under the rules of FTA any individual or business, registered for VAT, if:
- Is still dealing with the taxable services and goods, but for the past 12 calendar months the supplies or expenses were under the mandatory VAT registration threshold (i.e. AED. 375,000.) AND,
- 12 calendar months have passed since the entity was registered with FTA under voluntary registration.
In this situation, the taxed entity may apply for Voluntary de-registration of VAT. There is no limitation for any number of days to apply for FTA deregistration.
How to Cancel Vat Registration In UAE?
- Businesses no longer making taxable supplies
- Businesses making taxable supplies, but below the Voluntary Threshold
- Businesses making taxable supplies, above the Voluntary Threshold, but below the Mandatory Threshold
- Other – please specify the reason
Step 6: Click on Choose Files and upload all supporting documents
Step 7: Check and affirm the authorized signature and declaration part of the application form before submitting it.
Step 8: Next, FTA will review the application, and if confirmed the status will be changed to “Pre-approved.
Step 9: Finally, the business has to submit its VAT return filing and clear all its outstanding liabilities to complete the VAT De-registration procedure.
After Submission of Application
VAT Deregistration Process for Groups
The process for the Deregistration of VAT in UAE for the groups is the same as that of individuals. The difference is in the criteria specified for Groups that were registered for VAT.
In addition to other requirements being fulfilled, the groups need to have the following reasons become valid for them to get their VAT registration canceled:
- FTA will approve the cancellation of VAT registration for a group if the registered entity no longer meets the requirement to be considered as a group.
- FTA can also approve the VAT deregistration for the group if the companies in the group are no more financially associated with the group.
- FTA can also take the initiative to cancel the VAT registration of a group if it foresees the tax status as a group can result in any sort of tax evasion.
Protax provides the expert services of VAT Registration and Deregistration in compliance with the VAT laws, we can provide you with state-of-the-art services. Get our quality VAT consultation services to worry not for any vat deregistration penalty related to VAT.