VAT De-Registration

Tax De-registration is the provision for a registered taxable person to cancel his/her VAT registration. It means de-activation of the registration and the VAT number of the taxable person. Tax de-registration can be applied for by a person registered under VAT or done by the FTA on finding that a person meets the conditions for de-registration.

 

A person registered under VAT can apply for Tax De-registration in the following 2 cases:

• a. The person stops making taxable supplies and does not expect to make any taxable supplies over the next 12-month period OR
• b. The person’s taxable supplies or taxable expenses incurred over a period of 12 consecutive months is less than the voluntary registration threshold (AED 187,500) and he/she does not anticipate to cross this threshold in the next 30 days

 

Note that a person who has voluntarily registered under VAT cannot apply for de-registration in the 12 months following the date of registration.