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AKT Associates Services

VAT Deregistration in UAE

At AKT Associates, we offer expert assistance in managing the entire VAT deregistration process in the UAE, ensuring compliance and avoiding costly penalties.

Cancel Your VAT Registration Seamlessly with AKT Associates:
- If your business no longer meets the VAT registration criteria in the UAE, it's essential to cancel your VAT registration through VAT deregistration with the Federal Tax Authority (FTA).
- Whether your company has closed, revenue has dropped below the threshold, or you've restructured operations, proper VAT deregistration is a legal requirement.

Common Mistakes to Avoid

  • Unsettled VAT Liabilities – Clear all VAT dues before applying.
  • Active Trade Licenses – Cancel all licenses tied to the business.
  • Pending Labour Issues – Ensure visas and employee dues are settled.
  • Open Bank Accounts – Close all company bank accounts to complete deregistration.

 

Impact of VAT Deregistration

  • You can no longer charge VAT on sales.
  • You can’t claim input VAT on business expenses.
  • Lower administrative burden – No more VAT filings or FTA compliance.
  • Financial Strategy Shift – Review pricing, revenue, and tax planning post-deregistration.

Understanding VAT Deregisteration

  • VAT deregistration is the formal process of canceling a company’s VAT registration with the FTA.
  • Businesses must apply for deregistration when they are no longer eligible under UAE VAT law. Failing to do so on time can result in fines of AED 10,000 or more.

1. Mandatory VAT Deregistration

You must apply for VAT deregistration if:

  • Your business stops supplying taxable goods or services.
  • Your annual taxable turnover or expenses in the last 12 months drop below AED 187,500.

2. Voluntary VAT Deregistration

You may voluntarily apply if:

  • Your turnover is between AED 187,500 and AED 375,000.
  • You wish to cancel your VAT registration even if the business continues operations.

There’s no strict deadline for voluntary deregistration, but compliance requirements must be met.

3. VAT Group Deregistration

The FTA may approve deregistration of a VAT group if:

  • The group no longer meets the requirements.
  • There’s no longer a valid economic or financial relationship between group members.
  • Grouping leads to tax evasion or reduced tax payments.

To successfully apply, you may need:

  • Revoked trade license copy
  • Liquidation letter or board resolution
  • Audited or unaudited financial statements
  • Ministry of Labour report on employee status
  • Details of suppliers and customers
  • Declaration of business closure
  • Proof of settled VAT payments (if applicable)

Ready To Get Started?

Contact AKT Associates today for a free consultation and ensure your business is VAT & CT compliant without the stress.

Contact Us Now!

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Phone Dubai: +971 58 575 3042
Phone India: +91 8080088288
Email: cs@aktassociates.com

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