Once you have decided to stop providing your services and products to the people, you must go for deregistration right at the moment. How to deregister from vat UAE? This is not just a very important task to carry out but also saves you from unnecessary fines and penalties.
VAT registration is important for the people having an annual turnover of more than AED 375000. All the businesses who cross the VAT threshold are supposed to get registered for VAT. Similarly, when the threshold drops by or when the company decides that it no more wants to carry out its services in UAE, it must go for deregistration.
For the deregistration of VAT, there is a proper set of requirements that should be completed in proper order.
A person who is registered under VAT in UAE can apply for deregistration if he faces the following conditions;
- The registered person decides not to deal with the taxable supplies anymore
- The value of the supplies and products that are taxable gets reduced to that of the voluntary registration of VAT which is 187,500 AED over a year.
- The value of the taxable goods and supplies gets reduced to that of the mandatory threshold of VAT which is 375,000 AED
If a person gets registered for VAT in UAE, he must stay registered under VAY for at least a whole year before it applies for deregistration. All of these minor, as well as major points, must be kept in mind properly or else they may cause a number of problems for the registered person.
There are a number of people who do not go for deregistration and just stop paying the tax or renewing the license. This is so not the way of deregistration. This can cause huge problems for the company or the deregistered person and can also make the person may a number of penalties and fines as well.
There is a proper time period under which the taxpayers must stay registered under VAT. Before the minimum date that is set by the state, the taxable person cannot deregister. There are different time periods for different states so all the conditions that come under the state will be implemented on the taxpayer and he must comply with all the rules set by the state.
After applying for deregistration, the Federal Tax Authority will notify the respective people as deregistered and the date will also be specified from which the deregistration will come into effect.
VAT de-registration is as crucial ad the VAT registration under specified conditions. The people who fulfil certain conditions of VAT may go for VAT deregistration easily and they wouldn’t be stressed over paying the tax if they do not have enough turnover required to pay tax.
As Farahat and co. explain in their post VAT consultants in UAE can be of great help in such a condition. If a company or taxpayer doesn’t understand the conditions for registration and deregistration, they may have to face serious consequences. So, make sure you carry each and everything in an accurate manner to avoid any difficulties.