VAT DE-REGISTRATION IN THE UAE

VAT de-registration is the formal process of taking a business off the VAT register. Businesses in the UAE may have to deregister from VAT due to factors like discontinuing operations, reaching below the mandatory VAT threshold, or meeting other qualifying criteria. Businesses must comprehend the VAT de-registration process and comply with requirements to prevent penalties and maintain smooth operations.

An individual subject to taxation who enrolls in the VAT system can terminate their tax registration by requesting de-registration from the Federal Tax Authority.

Requirements for cancelling VAT registration in the UAE

• If a company or person is not generating any taxable revenue and does not anticipate generating any taxable revenue for the next 12 months.
• If a company or person has earned less than the voluntary registration threshold of AED 187,500.00 in the last 12 months, they are not required to register for taxes.