Failing to submit the de-registration application within the period specified will lead to the imposition of penalties
The UAE Federal Tax Authority (FTA) has defined the conditions for de-registration of Value Added Tax (VAT) in accordance with Federal Decree-Law No. 8 of 2017.
In a statement issued on Saturday, the FTA explained that the registrant must submit a de-registration application to the Authority if a registrant stops making taxable supplies or if the value of the taxable supplies made by the registrant over a period of 12 consecutive months is less than the voluntary registration threshold of Dh187,500 ($51,040) and it is not expected that the total value of the registrant’s anticipated taxable supplies or expenses subject to tax in the coming 30-day period will exceed the voluntary registration threshold.
The Authority went on to say that the de-registration application must be submitted within 20 business days of the occurrence of any of the aforementioned cases using the Authority’s e-Services portal.
"Knowing that failing to submit the de-registration application within the period specified in the tax legislation will lead to the imposition of administrative penalties as stipulated in the cabinet resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE," said the FTA statement.
The Authority confirmed that registrants will not be de-registered unless they have paid all due taxes and administrative penalties and filed all required tax returns for the period in which they were registered as stipulated under the tax legislation.
The FTA asserted that the UAE Tax System is based entirely on voluntary compliance by taxable persons, whether it being with regards to registration, filing tax returns and payment of due tax or de-registration, noting that these services are available free of charge.
The de-registration procedures can be completed within a few minutes via the FTA e-Services portal, available 24/7 on the FTA website, it added.
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