The Registrant who want to apply for VAT De-Registration Services should follow the below conditions :
- If he stops making Taxable Supplies.
- If the value of the Taxable Supplies which are made over a period of 12 months is less than the voluntary VAT Registration threshold and said Registrant does not expect that they’ll cross the voluntary registration threshold during the coming 30-days.
Taxpayers can apply for voluntary de-registration when taxable supplies fall below the mandatory threshold of AED 375,000 but above AED 187,500. The Registrant must apply to the De-Registration process within 20 business days of the happening of any of the above conditions.
Types of VAT Deregistration
There are two types of VAT deregistration services
- Voluntary VAT Deregistration
- Mandatory VAT Deregistration
Voluntary VAT Deregistration
A taxpayer may choose to deregister for VAT if
a. The value of their taxable sales in the past 12 months is between the voluntary threshold and mandatory threshold.
b. The value of their taxable sales in the next 12 months is between the voluntary threshold and mandatory threshold.
Taxpayers must submit the VAT deregistration form within 20 business days after the date of the event that requires deregistration
Late deregistration may result in a penalty of AED 1,000 and monthly thereafter , up to AED 10,000
Mandatory VAT Deregistration
Conditions For VAT Deregistration
Taxpayer ceases making taxable supplies and does not expect to make supplies in the next 12 months
Taxable turnover over the last 12 months is less than AED 187,500 and does not expect to exceed this in the next 30 days
Details to be submitted for VAT registration cancellation
An application to cancel VAT registration should be submitted to the authority on the prescribed form and include the following information:
- The registrant’s tax registration number
- Reasons for and evidence of meeting the de-registration conditions
- Date of meeting the cancellation condition
- Details of the value of supplies in the last 12 months and an estimate of the value of supplies in the next 12 months.
- Details of the value of expenses in the last 12 months and an estimate of the value of the expenses in the next 12 months.
- Any other information determined by the authority.
- The name of the registrant