VAT Deregistration in UAE

Being registered under the VAT law means that a business is acknowledged by the government as a supplier of goods and services and is authorized to collect VAT from customers and remit the same to the government. The UAE government enacted the VAT system on January 1st, 2018. VAT, as a general consumption tax, will apply to the majority of transactions in goods and services. A limited number of exemptions may be granted.

VAT applies equally to tax-registered businesses managed on the UAE mainland and in the free zones. Businesses will be responsible for carefully documenting their business income, costs, and associated VAT charges. VAT-registered businesses must report the amount of VAT they have charged and the amount of VAT they have paid to the government on a regular basis. It will be a formal submission, and reporting will be done online.

One of the tricky parts of the UAE VAT system is VAT DeRegistration. The requirements for deregistering Tax Register Numbers (TRN) under VAT require specific and diligent interpretation and timely management.

Like VAT Registration, even De-Registrations are equally important as they lead to penalties for late applications. A VAT De-Registration application should be submitted to FTA for TRN cancellation.

All these steps need to be done error-free to avoid any penalties. For this reason, you need a specialized, trusted team to do the VAT DeRegistration in the UAE. To get the benefit of an expert team at an effective cost, you can always partner with Falak Business Consultants.

Before registering for VAT, it is important to check if your business needs VAT registration or not. FBC provides excellent analysis on any business to identify VAT requirements in accordance with UAE law and regulations.