Step-by-Step Guide to Cancel VAT Registration in UAE
With the ever-evolving business and tax landscape in the United Arab Emirates (UAE), there are some cases when you must perform VAT registration cancellation in UAE. Are you looking for the scenario and steps to deregister your VAT registration in this country? In that case, you must invest some of your valuable time with us. Here, we will explore the right time to cancel your VAT registration. Later, we will highlight the steps to cancel your VAT registration.
The right time to cancel your VAT registration in the UAE
As a taxable person, you need to apply for the VAT registration cancellation in UAE if your organization stops activities related to the VAT supplies. The following are the situations in which you must immediately apply for deregistration or cancellation in this nation:
(As per Article 21 of the VAT Law)
1) If the business stops providing taxable supplies, or, in other words, stops doing business,
2) If the turnover of the business in the preceding 12 months was less than AED 187,500*. Furthermore, the business does not expect to cross the voluntary threshold of AED 187,500* in the coming 30 days.
If you fall under any of the cases that we have mentioned above, you must mandatorily apply for the VAT deregistration in the UAE.
There are situations where a taxable person can voluntarily de-register the VAT number
There are situations where a taxable person can voluntarily de-register the VAT number. As per Article 22 of the VAT law, a business may apply for VAT deregistration on a voluntary basis. This applies if the taxable supplies in the preceding 12 months were less than the mandatory threshold of AED 375,000*. Furthermore, Article 23 stipulates that a business that is registered voluntarily initially cannot apply for deregistration in the first 12 months from the date of registration.
Are you wondering about the steps involved in the process of deregistering your business from the VAT registration in this nation? In that case, you have to proceed to the next section.
What are the steps that you should follow to cancel your VAT registration in the UAE?
There are a few steps that you must follow if you want to cancel your VAT registration in the UAE.Do you know the best part? You can follow these steps comfortably online. The following is the list of steps you need to follow to cancel your VAT registration in this country:
1. Access the Emara Tax Account
Initially, you should access your Emara Tax account with your login credential or the UAE pass. If you have activated two-factor authentication, you should also enter the OTP obtained in your email address and mobile number to log in.
If you are a new Emara Tax user, you should choose the sign-up option. Once you have successfully logged in to your Emara Tax account, you may get access to the Emara Tax online dashboard.
2. Select your company in the Emaratax Dashboard
After reaching the Emara Tax dashboard, a list of Taxable Persons linked to your profile will be visible. Next, you should select the Taxable Person linked to your company and click the “View” button. However, you must make a new Taxable Person if you didn’t find your company’s Taxable Person on the list.
3. Initiate application to cancel the VAT registration
Next, you should open the application to cancel the VAT registration of your business in the UAE. At this step, you should click the “Action” button on the VAT icon under the dashboard. Now, you must choose the “Deregister” button to open the application to deregister the VAT in this country.
4. Update or edit the information
Before getting your deregistered application, you should click “Edit or Review” if you want to change your bank details. Next, you should click “Proceed to De-registration” to directly obtain the VAT deregistration application. Then, you must ensure you have all essential documents prepared for submission. Lastly, you should click the “Start” button to initiate your VAT cancellation procedure in UAE.
5. Give the required information and documents
After initiating your application, you should enter the required insights or information and upload any supportive documents in an appropriate format. However, you should ensure to fill in all blanks in the application and the documents submitted to support the details in the information. It will help you to avoid rejections or further resubmission of the application. Next, you should opt for the reason you are applying for the VAT deregistration. Based on your selection, you will see the input field and other sections.
6. Enter the eligible date
Next, you should specify the date your business will become eligible for the VAT deregistration. EmaraTax will automatically create the deregistration date in most cases. However, if you have a particular reason for cancelling your VAT, you can ask for an alternative date.
7. Fill and Upload the Excel
Next, you must give proof of your taxable supplies and expenses. You can only choose one of the following options to enter your taxable products and expenses:
You must only enter the number in UAE Dirham or AED.
You can save and go to the “Authorized Signatory” section by clicking the “Next Step” button.
8. Verify Authorized Signatory
After filling out and uploading the Excel, you should verify and check the authorized signatory’s information. To check the information and proceed to the last step, you should use the "Previous" and "Next" buttons.
9. Review and submit
Lastly, you should review all the details that you have entered. Once ensuring all your information is accurate, you should click the submit button to submit the application.
What happens after applying for the VAT deregistration or cancellation in the UAE?
After you have applied for the VAT cancellation, your application status will convert to “Pre-approved.” However, once you have cleared your outstanding liabilities and submitted the final return, apply and get the VAT refund, if any, the status of your application will change to “Approved.” Finally, your VAT cancellation procedure in UAE will be completed.
How can Flyingcolour Tax Consultants help you?
You must perform the VAT registration cancellation in UAE when you meet some scenarios as we discussed in this article. However, you need expert guidance to cancel your VAT registration in this country. Flyingcolour Tax Consultants can give expert suggestions to complete the VAT cancellation procedure in the UAE. Our experts can clear all your doubts about VAT deregistration in this country.
To learn more about How to Cancel VAT Registration in UAE and When a VAT Registration Required to be cancelled in UAE, book a free consultation with one of the Flyingcolour team advisors.
Disclaimer: The information provided in this blog is based on our understanding of current tax laws and regulations. It is intended for general informational purposes only and does not constitute professional tax advice, consultation, or representation. The author and publisher are not responsible for any errors or omissions, or for any actions taken based on the information contained in this blog.