When & Why VAT Deregistration Becomes Essential
In the UAE, VAT deregistration is required when your business no longer meets the taxable threshold or stops operating taxable activities. However, these delays in this process can lead to penalties and compliance challenges. Our experienced tax team walks you through each requirement helping you meet deadlines and avoid penalties. AKFA ACCOUNTING assesses your unique situation to determine if deregistration is necessary and assures you that the process is completed smoothly and accurately.
Why AKFA ACCOUNTING for VAT Deregistration?
Knowledge of UAE VAT Laws
Our team’s indepth knowledge of local VAT regulations allows us to handle the deregistration process with precision minimizing risks of delays and fines.
Solutions That Suit Your Business
Whether your business is closing, merging or experiencing changes in taxable activity, we adjust our approach to align with your specific business needs and regulatory obligations.
Complete Support & Clear Updates
We manage every aspect of VAT deregistration from start to finish by keeping you informed at each step. With AKFA ACCOUNTING, VAT compliance becomes a simple and smooth process.
Our Step by Step Process for VAT Deregistration
- Eligibility Assessment
We start by confirming your eligibility under UAE VAT laws. Our team reviews your revenue status, business activities and other qualifying factors to see if deregistration is appropriate.
- Document Collection and Verification
VAT deregistration involves detailed paperwork. We handle the gathering of financial records, business licenses and any other required documents to meet UAE authority standards reducing the risk of errors.
- Submitting the VAT Deregistration Application
Once we confirm eligibility and complete documentation, our experts submit the deregistration application on your behalf. We also manage all communication with the Federal Tax Authority (FTA) allowing you to focus on other business matters.
- Finalizing the Deregistration Process
After submission, we monitor your application’s progress, provide timely updates and address any FTA inquiries. Once approval is received, we will guide you through the final steps to close any remaining VAT obligations properly.
Common VAT Deregistration Scenarios
Business Closure
When a business permanently stops operations and no longer carries out taxable activities, deregistration is necessary to close VAT obligations.
Revenue Below Threshold
If your taxable supplies and imports fall below AED 375,000 in the past 12 months, you may qualify for deregistration.
Business Structure Change
If a merger, acquisition or restructuring changes the nature of your taxable activities, VAT deregistration may be required.
Our VAT Deregistration Services Include
- Eligibility Check
Reviewing your business’s financial and operational data to determine if VAT deregistration applies.
- Document Preparation
Collecting and preparing all necessary documentation as per FTA standards reducing chances of rejection.
- Application Submission
Filing the deregistration form and managing FTA communication on your behalf.
- Final VAT Return Filing
Completing final VAT returns and settling any outstanding liabilities with accuracy.
Our VAT Deregistration Services Include
Delaying VAT deregistration can result in fines. UAE VAT regulations mandate that businesses apply for deregistration within 20 business days from the date of eligibility. Missing this deadline may lead to penalties up to AED 10,000. AKFA ACCOUNTING handles these deadlines to ensure your business stays compliant and avoids unnecessary costs.
FAQ
VAT Deregistration is the process of canceling a business’s VAT registration with the Federal Tax Authority (FTA). AKFA ACCOUNTING Accounting & VAT Services helps streamline this process by ensuring all requirements are met and applications are submitted accurately.
Deregistration is mandatory if:
- Taxable supplies and expenses fall below AED 187,500.
- The business ceases operations or stops making taxable supplies.
AKFA ACCOUNTING ensures compliance by assessing your eligibility and submitting your deregistration on time.
Yes, if taxable supplies in the last 12 months are below AED 187,500 and the business has been VAT-registered for at least 12 months, voluntary deregistration is possible. AKFA ACCOUNTING handles all necessary steps for a smooth process.
Applications must be submitted within 20 business days of meeting deregistration conditions. AKFA ACCOUNTING ensures timely submission to avoid penalties.
Failure to deregister within the required timeframe can result in penalties of AED 10,000. AKFA ACCOUNTING ensures compliance and handles the deregistration process efficiently to avoid such fines.
