VAT non-compliance could cause huge penalties and this reason is enough to make business persons look for VAT professionals who can handle all their VAT-related tasks while rooting out all the doubts and fending off unnecessary penalties. Maintenance of commercial books of accounts and records of all your business transactions becomes imperative once you register for VAT. The FTA conducts random audits from time to time, which you need to foreknow right from the beginning. To steer clear of any unpleasant situations you might want to give charge of your accounting and bookkeeping functions to bookkeeping specialists who are worth their salt in providing accurate and transparent bookkeeping services. The aspiring business persons in UAE are more likely to fail to comply with the ever-changing rules and regulations as they are new to the system. Therefore, it is always advisable for new business persons that they work with professionals only to ensure that their accounts are on the right track of being compliant.
VAT Deregistration in UAE
VAT deregistration in UAE permits taxable entities to cancel their VAT registration and suspend their Tax Registration Number (TRN). Only the businesses and individuals who are registered under the Federal Tax Authority (FTA) are eligible to deregister from VAT on a compulsory or voluntary basis. VAT deregistration becomes obligatory to the FTA-registered businesses or individuals who:
- Cease to make/trade taxable supplies and have no intention of making future taxable sales.
- Make taxable supplies but the turnover in the 12 calendar months after registering with the FTA is less than the Mandatory or Voluntary Registration Threshold.
VAT Deregistration: Prerequisites & Procedure
If your business has stopped functioning you need to obtain a company liquidation letter from the government authorities to be able to request the deregistration of VAT. VAT Deregistration is done electronically through the FTA portal. Once your VAT-deregistration application is received and reviewed by FTA the status of your VAT De-Registration will start displaying ‘Pre-Approved’ after confirmation provided you have complied with the law. Then the next step is to submit the final VAT Return Filing. Businesses must clear all the outstanding liabilities in order to complete the VAT Deregistration process after the last VAT Return filing is done.
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VAT Deregistration: Types
The FTA declared that the UAE Tax System is based entirely on voluntary compliance by taxable entities, whether it is regarding registration, tax return filing and payment of due tax or de-registration. Therefore, an entity can apply for the deregistration mandatorily or voluntarily:
Public companies are obligated by law to ensure that their financial statements are audited by a registered CPA. The independent audit aims to ensure that the management has provided financial statements that are free from material error. Small companies can go for an audit when required by any financial institution, supervisory unit, or to meet certain conditions. However, Limited Liability companies (LLCs), Partnerships or Affiliations limited by shares, Joint-stock companies and every other business mandated by law should conduct an audit at any time of the financial year in the UAE.
Adam Global studies all the possible reasons that might result in application disapproval. In order to make the VAT deregistration process an easy breeze for you, our qualified VAT experts review your business activities and deregistration possibilities right from scratch. After you approach us for VAT deregistration assistance before taking any step, we first figure out the significance and requirement of the same for your business. You can reach Adam Global for various VAT-related services such as:
- VAT Registration
- VAT Compliance & Control
- VAT Filing & Payment
- VAT Training
- VAT Deregistration
- Evaluation of VAT Impact on Company Cash Flow, etc.
Partner with us, only if you want your VAT-related activities to be handled by experts in the UAE – from VAT registration to VAT compliance to VAT deregistration.
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