As per Article(21) of Federal Decree – Law No. 8 of 2017, taxable person must apply for de registration before 20th of Jan 2019 if his reported taxable supply ( last 12 months ) not meet the conditions stipulated in Clause 2 of article 17of Federal Decree Law or AED. 10,000 will be imposed according to Cabinet Decision No. (40) of 2017.
Article (14) – Tax Deregistration – Cabinet Decision No 52 of 2017 – Executive Regulations
1. The Registrant must apply to the Authority for
de-registration in accordance with the cases mentioned in the Decree-Law, within (20)
business days of the occurrence of any of them.
2. The Authority shall accept a Registrant’s application for
deregistration where the two following conditions are met:
a. The Registrant stops making supplies referred to in Article
(19) of the Decree-Law and does not expect to make any such supplies over the
next 12-month period;
b. The value of supplies referred to in Article (19) of the
Decree-Law made, or taxable expenses incurred, by the Registrant over the
previous 12-months is less than the Voluntary Registration Threshold and the
Authority is satisfied that his supplies,
according to the provisions of the Decree-Law, or taxable expenses, expected
over the next 30 days, are not expected to exceed the Voluntary Registration Threshold.
3. If the deregistration application is approved, the
Authority shall cancel the Tax Registration of the Registrant with effect from
the last day of the Tax Period during which the Registrant has met the
conditions for deregistration or from such other date as may be determined by
4. Where the Authority is satisfied that the conditions in
Clause (2) above are met, and the Registrant has not applied for
deregistration, the Authority shall deregister the Registrant with effect from
the last day of the Tax Period in which the Authority became satisfied that the
conditions have been met or from any other date determined by the Authority.
5. A Registrant shall not be deregistered unless he has paid
all Tax and Administrative Penalties due and filed all Tax Returns as due under
the Decree-Law and the Federal Law No. (7) of 2017 on Tax Procedures.
6. For the purposes of Clause (5) of this Article, any Goods
and Services forming part of the assets of Business carried on by a Registrant
shall be deemed to be supplied by him at a time immediately before ceasing to
be a Registrant and any tax payable shall be included in the final tax return,
unless the Business is carried on by an appointed trustee in bankruptcy
pursuant to the Federal Law No (7) of 2017 on Tax Procedures.
7. Where a Registrant requests to be deregistered from Tax due
to the reduction of his Taxable Supplies to less than the Mandatory
Registration Threshold, the Authority will, if in agreement with the
Registrant, cancel the Tax Registration with effect from:
a. The date requested by the Registrant in the application; or
b. The date on which the request is made if the Registrant did
not indicate the preferred deregistration date.
8. Where the Authority has deregistered a Registrant from Tax,
it shall notify that Registrant of the date on which deregistration takes
effect within (10) business days of making the decision.
Article (21) – Tax De-Registration Cases – VAT Decree-Law
No. (8) of 2017 – English
A Registrant shall apply to the Authority
for Tax Deregistration in any of the following cases:
1. If he stops making Taxable Supplies.
2. If the value of the Taxable Supplies made over a period of
(12) consecutive months is less than the Voluntary Registration Threshold and
said Registrant does not meet the condition stipulated in Clause (2) of Article
(17) of this Decree-Law.
Article (22) – Application for
Tax De-Registration – VAT Decree-Law No. (8) of 2017 – English
A Registrant may apply to the Authority for Tax Deregistration if the value of his Taxable Supplies during the past (12) months was less than the Mandatory Registration Threshold.
For Deregistration process – Please contact us Dubai Office – 04 2699733 / 050 8309733 Ras Al Khaimah Office – 07 2233433 / 050 4067007