Value Added Tax (VAT) was implemented in the UAE in 2018, set at a standard rate of 5%. While businesses surpassing mandatory registration threshold are obligated to register, some may find themselves in a position where deregistration becomes necessary. This article explains more about VAT deregistration services in Dubai that we provide at “VATRegistrationUAE“.

How to Deregister for VAT in the UAE?

Deregistration formally withdraws a business’s VAT registration with the Federal Tax Authority (FTA). This process becomes applicable when a business has permanently ceased operations, fallen below the revenue threshold, or transitioned to non-taxable activities. Essential documentation must validate the grounds for deregistration, alongside the submission of a final VAT return, settlement of any outstanding VAT liabilities, and obtaining clearance certification from the FTA.

This certification serves as confirmation that all VAT obligations have been met, paving the way for the official deactivation of registration. Full compliance is paramount, though navigating the procedures can be intricate, given the stringent timelines involved. Ensuring accurate filings, payments, and adherence to requirements is critical to smoothly achieving deregistered status. Failure to meet any of these requirements can lead to delays or rejection of the deregistration application.

Top VAT consultants in Dubai can streamline this intricate process. Possessing expertise in deregistration eligibility criteria, these agents can assist businesses in navigating the paperwork submission, finalizing return filings, settling payments, and obtaining clearance and approval for deregistration from the authorities.

Top VAT Deregistration Services in Dubai

Engaging the services of proficient VAT consultants is advisable to seamlessly deregister for VAT in compliance with statutory regulations. Top Tax Consultants in Dubai assists Taxable Persons with the following:

1. Application for VAT Deregistration

Guidance on eligibility for VAT deregistration under various scenarios
Assistance with preparation and filing of VAT deregistration application
Tracking status of application and liaising with FTA on behalf of clients

2. Final VAT Return Filing

Review and reconciliation of VAT records and documents for final period.
Preparation and filing of final VAT return before the due date.
Obtaining clearance on any refunds payable.

3. Settlement of Outstanding Liabilities

Calculation of outstanding VAT, penalties, fines and other amounts payable
Arrangement of payments to FTA to obtain clearance of liabilities
Provision of documentation for liabilities clearance

4. Application for Clearance Certificate

Guidance on documentation required for clearance certificate
Preparation and submission of application for clearance certificate
Follow ups with FTA and obtaining clearance certificate
Assistance with retaining records post deregistration

5. Post Deregistration Support

Guidance on changes to book-keeping and invoicing post deregistration
Answering of VAT compliance queries arising in future
Re-registration assistance if business becomes liable again in future

The agents will help address all FTA requirements and ensure businesses obtain prompt VAT de-registration.

Key Factors to Consider when Choosing a VAT Deregistration Service Provider

There are a few key factors businesses should evaluate when choosing a VAT deregistration service provider:

Experience in the field – Choose an agent with extensive experience in VAT advisory as well as experience handling multiple VAT deregistration.
Track record of on-time VAT deregistration- Check the agent’s track record of handling VAT deregistration within committed timelines without delays.
Qualified professionals on board – Ensure the agent has knowledgeable and qualified VAT specialists and consultants to handle all aspects of deregistration.
Online resources and portal access – Check if the agent can complete tasks using their online portal access without requiring physical submissions.
Competitive pricing – Get indicative quotes from multiple agents and choose the most competitively priced option.
Post deregistration support – Inquire about the scope of support offered post successful VAT deregistration.
Client testimonials – Check online reviews and testimonials to understand client satisfaction levels.

By thoroughly evaluating consultants based the above factors, businesses can select the top VAT deregistration service provider suited to their specific needs. This will ensure a hassle-free and efficient VAT deregistration experience.

Table 2: VAT Deregistration – Common Queries

S. No.	Query	Response
1.	What documents are required for de-registration based on different situations?	– For businesses no longer making taxable supplies: Proof of stop making taxable supplies, financial documents, and a declaration. – For businesses below the Voluntary Registration Threshold: Financial documents and a declaration. – For businesses above the Voluntary Threshold but below the Mandatory Registration Threshold: Financial documents and a declaration. – For any other reason: Upload all relevant supporting documents.[1]
2.	What are the different de-registration application status details?	– Pending: after submission by the Taxable Person. – Submitted: after FTA requests additional information. – Pre-approved: once FTA approves with outstanding liabilities. – De-registered: once approved with no outstanding liabilities or after payment of final tax return and penalties for a ‘pre-approved’ application.
3.	What’s the process after submitting a de-registration application?	Once submitted, the FTA may approve, reject, or resubmit the application. If approved, a de-registration certificate is generated for download. Additional supporting documents may be requested.
4.	Can consultants assist with objections or appeals?	Yes, expert firms can also help businesses in case approvals are withheld requiring further processes.

Consultants ensure all compliances are addressed and documentation is in order, avoiding delays in approval. Their expertise helps resolve queries and address objections if any.

Consult Top VAT Experts in UAE

In essence, VAT deregistration stands as a pivotal regulatory endeavor demanding meticulous adherence. Though guidelines strive for simplification, enlistment of specialized service providers is advisable. These professionals adeptly handle documentation, interface with tax authorities, and ensure prompt approval.

Opting for a seasoned VAT consulting firm streamlines the deregistration process. Businesses can delegate either the entire procedure or specific aspects to these specialists. This approach not only conserves significant time and energy but also guarantees compliance, mitigating regulatory pitfalls. Ultimately, capitalizing on proficient VAT deregistration services in Dubai emerges as advantageous for businesses.

References

VAT User Guide | Registration, Amendments, & De-registration. https://tax.gov.ae/DataFolder/Files/Pdf/VAT%20User%20Guide_English_V9.0%2016%2011%202021.pdf. March 22, 2024

[1] VAT User Guide | Registration, Amendments, & De-registration. https://tax.gov.ae/DataFolder/Files/Pdf/VAT%20User%20Guide_English_V9.0%2016%2011%202021.pdf. March 22, 2024