Taxable businessmen must know the rules and processes for VAT annulment in UAE, as administrative penalties will be imposed on failure to file an application within the timeframe specified in the tax law. Let us understand the circumstances in which an entity can de-register under VAT and the process to be followed for the same.
"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 or done by the Federal Tax Authority (FTA) on finding that a person meets the conditions for de-registration.
Eligibility for VAT Deregistration
As per the regulations of FTA , an entity can apply either for Compulsory (mandatory) deregistration or for Non-compulsory (voluntary) deregistration. Whether it is a compulsory or non-compulsory category, the applicant should comply with certain eligibility norms to get the cancellation process approved by the FTA.
A) An individual or a business is eligible under Compulsory deregistration:-
B) The time limit:
Non-compulsory VAT Deregistration
A) An individual or a business is eligible under Non-compulsory deregistration:-
B) The Time limit:-
*Note: Deregistration does not exempt the Person from his obligations and liabilities that were applicable under the Decree-Law while he was still a Registrant.
Azmi A. Elgabour / Global Tax Practitioner, Tax Agent / +971 / 501235918
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