When must you de-register from VAT in the UAE?

VAT Registration & Deregistration

A company’s VAT deregistration in Abu Dhabi is one of the less well-known tax matters, along with advance VAT reports and VAT disclosures. However, many businesses must understand when VAT Registration or deregistration is necessary, how to go about doing so, and the benefits and drawbacks it implies.

VAT Deregistration in Abu Dhabi

Deregistering from VAT entails ceasing to collect VAT for your company, either voluntarily or by law. The Federal Tax Authority (FTA) released the following criteria to determine if you must submit a deregistration application:

If any of the following applies to you, you must ask for deregistration within 20 business days of the event:

  • Once you stop producing taxable supplies.
  • When you have continued to make taxable supplies but your 12-month total value was below the threshold for voluntary registration.
  • Over the previous 12 calendar months, the amount of your taxable purchases or expenses has decreased below the voluntary registration level.
  • In the upcoming 30 days, the sum of your taxable purchases or outlays won’t be greater than the voluntary registration level.

Applying for voluntary deregistration is possible if you:

  • If the value of your taxable supply during the previous 12 months was more than the voluntary registration level but less than the required registration threshold and you are continually producing them.
  • In the upcoming 30 days, the taxable shipments will exceed the voluntary registration threshold but fall short of the required registration requirement.

VAT registration

It’s important to keep in mind if you’re starting a business in the UAE for the first time that you must register for VAT if your annual revenue exceeds AED 375,000 at any point over the previous 12 months. Businesses who don’t register promptly will be assessed a late registration administrative fine of AED 20,000 as well as extra fines based on late filing and non-payment of prior VAT liabilities on a percentage basis.

VAT Registration in Abu Dhabi

To clear up uncertainty and prevent arbitrary fines, it is crucial to deal with VAT experts who can manage all of your VAT-related difficulties. Adepts Chartered Accountants offers comprehensive and custom services to meet all of your needs.

It is crucial to remember that you will need to keep business books of accounts and records of all your company activities after you register for VAT. You should be prepared for random audits by the FTA, which they occasionally undertake. You may accomplish this in several ways, both yourself and in collaboration with bookkeeping experts.

It is usually advised to engage with bookkeeping experts if you are new to the industry to make sure that your accounts are on the correct track to becoming compliant. In Abu Dhabi, Adepts Chartered Accountants has a reputation for offering precise and open bookkeeping, accounting, VAT de-registration, and vat registration in Abu DhabiEven if your company is looking to make changes to enhance flexibility, reduce risk, and lower the cost of managing your VAT model, our staff and licensed tax agents can support you and offer helpful advice on realistic options.

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