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VAT De-registration Services in UAE

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    VAT De-registration Services in UAE

    As companies develop, they could come up against scenarios in which VAT de-registration becomes vital. De-registering from VAT is a legal process which is governed by the Federal Tax Authority (FTA) in the UAE, and it refers to the wipeout of a business from the VAT register when the corporation doesn't fulfil the eligibility criteria for VAT registration. At Vigor Accounting & Taxation LLC, we provide VAT de-registration services to our clients which are in line with the FTA’s regulations and to help them with the ending of the procedure in a well-organized and effective way.

    What is VAT De-registration?

    VAT de-registration is the process of cancelling a company’s VAT registration with the FTA when it no longer needs to charge or collect VAT. This process ensures that businesses stop charging VAT on their supplies and also cease to reclaim VAT on their purchases once de-registered.

    The FTA allows for VAT de-registration under certain circumstances. Failure to de-register when required can result in penalties and fines. Therefore, businesses must ensure they follow the correct procedures to avoid any potential non-compliance.

    When Should a Business Apply for VAT De-registration?

    There are two primary situations in which a business may need to apply for VAT de-registration

    • Mandatory VAT De-registration

      When a company is no longer eligible for VAT, it must de-register from the mandatory VAT registration threshold which is AED 375,000 in taxable turnover. The legal obligation of the business is to derecognize its registration if its taxable suppliers have consistently performed below this threshold on a Continued basis.

    • Voluntary VAT De-registration

      A company can quietly de-register for VAT if the total of its supplies and costs over the past year are less than the volunteer enrolment threshold of AED 187,500. This is the best alternative for organizations that have trimmed their service capabilities or are going through the process of winding up.

    Common Challenges in VAT De-registration in UAE

    While the VAT de-registration process may seem straightforward, businesses often encounter challenges, including

    01

    Final VAT Liability
    Businesses should pay off all VAT owed. This is necessary before de-registering. Not paying may lead to fines and issues during de-registration.

    02

    Accurate Record Keeping
    Ensuring the correctness of all VAT-related documents is up-to-date and accurate for a successful de-registration application is very important. Any differences may lead to delays or rejection of the application.

    03

    Timely Submission
    Every company which is corrected under the FTA receives fines of failure to deregister in contrast because it is necessary to act quickly.

    The VAT De-registration Process

    De-registration for VAT in the UAE is a necessitation rather than a complex end step of the multi-stepped process that requires from the businessman all the necessary means to be the part of the tax range in order to operate in a completely legal way. Below is the VAT de-registration process in brief

    01
    Eligibility Assessment
    The primary step in the process is to ascertain if your business would qualify for a VAT de-registration. We examine the taxable supplies and expenses of your business to see if it is meeting the requirement for de-registration which can be either mandatory or voluntary and then we determine the way forward.
    02
    Final VAT Return Filing
    One of the requirements of the de-registration process is the owner is obliged to file the last VAT return to FTA wherein he will be either processing the accounting records to calculate correct tax charge or will pay the remaining liability in case any. This is to make sure that the business has collected all VAT owes and has settled any balances which might exist.
    03
    Ongoing Compliance
    Even if a business files for a VAT de-registration in UAE, it should preserve VAT records for at least five years as per UAE tax rules. Here at Vigor Accounting & Taxation, we help you maintain your business in accordance with regulatory requirements during the VAT deregistration process as part of our consulting services.
    04
    Application Submission
    Once it is established that you are eligible, then you can proceed to the next step which is to apply for the VAT dilation in the FTA’s e-Services portal. This process requires a request for thorough information about the VAT amount, including the reasons for de-registration with supporting documentation.
    05
    Approval from FTA
    Then, after submission, the FTA evaluates the ground complete and either gives the go signal or sends you packing according to the successfulness of the application. Later, the FTA, when successful, will issue a VAT de-registration certificate, representing the official exclusion of your business from the VAT list.

    Why Choose Vigor Accounting & Taxation LLC for VAT De-Registration Process in UAE

    At Vigor Accounting & Taxation, we are proud to present the best quality VAT de-registration services that have been developed to steer enterprises with confidence through the entire process. Our tax experts collaborate with your business to guarantee complete compliance with FTA regulations and escape typical mistakes. We do all the work from diagnosing your eligibility for de-registration to the formal submission of the application and filling in your VAT returns.

    01
    Expert Advisory Services
    We provide businesses with customized advisory services so as to help them define whether they are suitable for VAT deregistration which does not last for long and is in the FTA rules.
    02
    Hassle-Free Application Submission
    Our team makes sure that the de-registration process is as easy as possible by being responsible for the application and all the documentation needed, by making sure your submission is accurate and complete.
    03
    Post De-registration Compliance
    Even after your business has been de-registered, we continue to support you by ensuring that all VAT records are properly maintained for future compliance requirements.

    Transform Your Vision into Reality—Book Your Free Consultation!

    Don’t wait—schedule your free consultation today and take the first step towards transforming your vision into reality!

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