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Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration. It means de-activation of the registration and the VAT number of the taxable person. Tax de-registration can be applied for by a person registered under VAT in Dubai or done by the FTA on finding that a person meets the conditions for de-registration.
Taxable Person is required or eligible to deregister in following 2 cases:-
(1) If taxable person, cease making taxable supplies; or is still making taxable supplies but the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold. Then taxable person, must apply for deregistration within 20 business days from the occurrence of the event.
(2) If taxable person, is still making taxable supplies but the value in the previous 12 months was less than the Mandatory Registration Threshold; and 12 months have elapsed since the date of registration if taxable person was registered on a voluntary basis. Then taxable person, may apply for a voluntary de-registration.
VAT De-registration in Dubai is an online process which can be accessed through the Federal Tax Authority’s online portal. Process of deregistration under VAT:-
(1) A registrant should apply for de-registration. The registrant should ensure that due tax and penalties have been paid and tax returns have been filed. The registration will not be cancelled unless these are done.
(2) If the de-registration application is approved, the tax registration of the registrant will be cancelled with effect from the last day of the tax period during which the event of de-registration has occurred, or from a date decided by the FTA. A notification on successful de-registration will be sent to the registrant within 10 business days after the de-registration application is approved.