VAT deregistration becomes necessary when an entity fails to achieve sales up to the threshold set by the Federal Tax Authority (FTA). The thresholds recommended for mandatory and voluntary registration by the FTA are AED 375,000 and AED 187,500, respectively. According to UAE VAT law, the application for deregistration must be submitted within 20 days of the decline in supplies below the voluntary threshold over the previous 12 months, or when the entity ceases to make taxable supplies.
Our team of VAT experts diligently reviews our clients' taxable supplies details at regular intervals to prevent any oversight leading to the deregistration requirement. We proactively inform our clients in advance to prevent the imposition of the associated penalty of AED 10,000. On numerous occasions, we have successfully managed the VAT deregistration process for many Small and Medium Enterprises, ensuring timely compliance and safeguarding them from penalties. Our experts remain vigilant about events impacting our clients' taxable supplies and are always ready to assist in compliance with relevant laws and regulations, thus mitigating penalties and other adverse outcomes.
