VAT deregistration in the UAE is a key process for businesses that have ceased taxable activities or no longer meet registration criteria. To ensure a smooth and compliant procedure, specific documentation must be submitted to the Federal Tax Authority (FTA). This blog outlines the required documents for VAT deregistration, which the FTA uses to assess eligibility, confirm business status, and ensure all tax obligations are fulfilled. Incomplete or incorrect submissions may lead to delays, rejections, or penalties.
Essential Documents Required for VAT Deregistration in the UAE
Your cause for deregistration will determine the specific papers you need; nonetheless, the following are often necessary in most circumstances.
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VAT Deregistration Application Form
This form will be officially filed online, utilizing the FTA’s eTax system. The information includes your Tax Registration Number (TRN), the cause for deregistration, and the effective date of deregistration.
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Copy of Trade License (or revoked Trade License)
Your company’s brand is based on a real trade license. If your firm has discontinued operations, a copy of the canceled or revoked trade license serves as evidence of closure.
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Reports on Finance
The Profit and Loss Statement, Balance Sheet, or Trial Balance are examples of relevant time financial statements, both audited and unaudited. These records show your income and the status of your taxable suppliers below the deregistration limitations, or that your operations have ceased to exist.
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Official Letter or Board Resolution
If the company has discontinued operations, a board decision certifying the cessation or a liquidation letter must be submitted. Companies experiencing changes, such as mergers or the transfer of a license, may need an official letter or amended contracts.
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Letter on Company Letterhead Declaration
An official notification that the firm will not surpass the VAT registration threshold during the following 30 days. This letter certifies your eligibility for deregistration as a business under the voluntary registration limit or supplying services outside the VAT area.
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Letter from the Ministry of Labor (where appropriate).
This letter is especially important when the company is insolvent or has discontinued operations. It certifies the number of employees.
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Evidence of Business Activity Cessation for Natural Persons
Those canceling their registration must present papers attesting to the cessation of any taxable business activities. A signed promise that no taxable supply would be created in the following 30 days is also necessary.
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Financial Turnover Template
Some deregistration conditions require presenting a template outlining taxable income and costs from the VAT registration date to the deregistration date.
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Documents supporting special cases.
- Companies that provide commodities outside of the VAT zone or that are free from VAT may need a complete chart outlining their business itinerary, suppliers, importers, and consumer locations.
- Sales of licenses or firm reorganization need the filing of updated sales contracts and business setup agreements.
How can you submit these documents?
All documents must be submitted electronically using the Federal Tax Authority’s EmaraTax system, so your VAT deregistration application specifies this. The steps are as follows:
- Log in to your FTA e-Services account.
- Obtain a VAT deregistration form.
- Complete the application form with correct information.
- Upload any necessary supporting documents in the appropriate formats.
- Submit your Application
Suggestions For A Smooth VAT Deregistration Process
- Prepare papers early: Gather all necessary documents before beginning the application to minimize delays.
- Ensure correctness. Check your financial records and statements again to ensure that they accurately represent your current business situation.
- Act quickly: If the FTA requests further papers or information, respond promptly to expedite approval.
- Keep copies of all submitted papers and FTA communication for your records.
- VAT legislation may be difficult; contact a tax expert for details specific to your case.
How Tax Consultants in the UAE Can Assist
Businesses are advised to seek the expert services of top Tax Consultants in UAE, such as VAT Registration UAE, to seamlessly determine VAT taxability and ensure compliance with UAE VAT law. Contact us today, and we shall be glad to assist you.
