VAT de-registration is the process of cancelling a business's VAT registration with the FTA. A de-registered business no longer charges VAT or files VAT returns going forward, though historical records must be retained for five years.
When the business stops making taxable supplies altogether, or when taxable supplies fall below AED 375,000 per year and are expected to remain below that level.
A business may voluntarily apply when supplies fall below AED 187,500 per year. The FTA must approve the application. De-registration is not permitted if there are outstanding VAT liabilities or unfiled returns.
On de-registration, a final VAT return must be filed covering the period up to the de-registration date. VAT on business assets held at de-registration may need to be accounted for as output VAT.
Finanshels handles the full application process, prepares the final VAT return, and ensures all obligations are settled. See our VAT services.
