De-Registration of VAT when Closing your Business in UAE Mainland

VAT and liquidation of company in Dubai

Value added tax (VAT) deregistration in a proper way is as important as it is in VAT Registration in UAE. The executive rules and regulations regarding VAT deregistration have made it clear for the people that they must follow the proper procedures to get deregistered from paying taxes.

There may be a lot of reasons behind company liquidation Dubai from VAT. Some may deregister voluntarily while the rest may go for involuntary deregistration. Companies whose annual turnover drops that of the required threshold i.e. Dh375,000 go for voluntary deregistration of VAT go to this website Farahat and Co to find more detail and info related to VAT registration, vat return filling, vat refund and more. Also, when companies take the decision of closing down their business n UAE may go for voluntary deregistration as well.

Some companies may also have to go for Mandatory deregistration due to different reasons. When the federal tax authority(FTA) cancels the VAT number of the company because of its decision to not deal with the taxable supplies, the mandatory deregistration occurs. It means when the company takes the decision of not dealing with the taxable supplies in the future or making it, it has to go for mandatory deregistration.

Proper rules and regulations have been released for deregistering the company if it meets any of the cases that are there in the Federal decree law After the business applies for the deregistration, it has to wait for the application to get approved. Due to the application submitted, FTA cancels the tax registration of the company. This will be approved on the basis of the company’s condition on the last time when the application was submitted.

Pay the pending payments before deregistration of VAT in UAE!

You must pay all the pending tax return, outstanding taxes as well as penalties in order to cancel your registration. These formalities should be fulfilled properly before going for deregistration or else they will delay the deregistration process.

Deregistration of tax groups

Tax groups are also supposed to be deregistered if they are no longer in a condition to meet all the necessary requirements that make them a group. Also, if the companies are not associated with financial terms anymore, they must deregister their groups. Furthermore, if the companies have decided to leave their associations between them and FTA also believes it that way, it would be led of the discontinuation of VAT payments.

The reason behind VAT implementation was to enhance the conditions of people in the UAE. People who meet the requirements of VAT registration or deregistration must carry out all the necessary processes in order to avoid any sort of penalties or fines.

VAT consultant in Dubai, UAE are playing a huge role in helping the people with their tax needs. A lot of expats have started their companies in the UAE. this makes them less knowledgeable of all the taxes like excise tax UAE and tax laws like excise duty UAE. That is why it would be better for them to take the help of VAT consultants to be on the safe side and to comply with all the rules and regulations in the UAE. They will make sure that you abide by the rules and regulations of VAT in UAE properly.

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