UAE Taxes: Answer to queries on VAT Deregistration!
Since the introduction of VAT in the UAE, there are lots of queries to be answered among the entrepreneurs. Today, every business is updated with the VAT news in UAE; they know the importance of VAT registration with FTA or Federal tax authority. VAT deregistration is a crucial process often downplayed by eligible business. The companies should have better understanding about VAT Deregistration, when they should apply for it, otherwise you may face heavy penalty for late application of VAT deregistration.
What is VAT Deregistration?
VAT Deregistration is a process where registered companies cancel their VAT registration with FTA. It’s a mandatory process when taxable company ceases its operations or doesn’t require VAT registration no longer! Taxable businesses usually apply for VAT deregistration and FTA will cancel the registration after receiving application and successful submission of required documents. The companies should be aware of the tax news in UAE, as the failure to apply tax rules will attract administrative penalties. UAE accounting experts recommend VAT deregistration on time to prevent additional penalties.
What is the eligibility for VAT deregistration?
According to Dubai VAT news, the companies that no longer deal with taxable supplies can apply for deregistration with the FTA. The VAT registered companies are also eligible for voluntary deregistration, if the value of taxable goods and services are decreased by the prescribed threshold of AED 375,000, but above the threshold value of AED 187,500. When the taxable supplies in a company, are below the threshold value, it’s compulsorily required to undergo VAT deregistration. As per the FTA guideline, there are two types of VAT deregistration,