Are you wondering how to avoid late VAT de-registration penalties in the UAE or seeking accounting services along with tax registration? We’ve got you covered! Understanding the circumstances under which VAT de-registration is applicable is crucial to prevent any fines. Here’s a detailed guide:
When to Apply for VAT De-registration in the UAE
- Cessation of Taxable Supplies:
- If your business or you as an individual cease making taxable supplies and do not anticipate any over the next 12 months, it’s time to apply for VAT de-registration.
- Value of Taxable Supplies Below Voluntary Registration Threshold:
- If your business is still making taxable supplies, but the value in the preceding 12 calendar months falls below the Voluntary Registration Threshold (AED 187,500), VAT de-registration is necessary.
- Value Below Mandatory Registration Threshold After 12 Months:
- If your business continues to make taxable supplies, but the value in the previous 12 months is less than the Mandatory Registration Threshold (AED 375,000), and 12 months have elapsed since the date of registration (if registered voluntarily), you are eligible for VAT de-registration.
- Voluntary Registration Limitation:
- Individuals or businesses that voluntarily registered under VAT cannot apply for de-registration within the first 12 months following the date of registration.
- Late VAT De-registration Penalties:
- Be aware that applying for de-registration after the stipulated time could result in penalties. The late VAT de-registration fine is AED 1,000 in case of delay. Subsequently, a monthly penalty will be incurred on the same date, reaching up to a maximum of AED 10,000.