VAT deregistration is required where the entity is unable to make sales up to the threshold as provided by the Federal Tax Agency (FTA). The threshold suggested for mandatory and voluntary registration by FTA are AED 375,000 and AED 187,500, respectively. The UAE VAT law requires application for deregistration to be filed within 20 days of the fall in supplies below the Voluntary threshold during previous 12 months or where the entity stops making taxable supplies.
Our VAT experts strives to review our clients' taxable supplies details on frequent intervals to ensure that the deregistration requirement has not been arrived and to intimate the clients prior to the requirement so that the annexed penalty of AED 10,000 can be avoided. We have performed VAT deregistration of many Small and Medium Enterprises within the time due and have saved them from penalties on several occasions. Our experts always take account of the events affecting taxable supplies of our clients and are on the front foot to assist the clients in complying with the relevant laws and regulations to avoid the penalties and other negative consequences.