The main laws governing tax registration in the United Arab Emirates are Federal Law No. 8 of 2017 on Value-Added Tax (the VAT Law), Cabinet Decision No. 52 of 2017 on the Executive Regulations of Federal Law No. 8 of 2017 on VAT (the Executive Regulations), and Federal Law No. 7 of 2017 on Tax Procedures (the Tax Procedure Law).
The process by which a Taxable Person or his Legal Representative registers with the Federal Tax Authority for tax reasons is referred to as Tax Registration in Article 1 of the VAT Law. Apply for tax deregistration in the UAE per the applicable Tax Law rules.
Get the TRN After Tax Registration in UAE
When the Authority issues the Taxable Person a Tax Registration Number in the UAE, tax registration is officially certified (TRN). According to the VAT Law, each person registered for tax reasons receives a unique number from the Authority called a TRN.
Procedures for Tax Registration in UAE, Deregistration, and Modification of Data-Related Thereto According to Article 6 (1) of the Tax Procedure Law, a Taxable Person who is not registered or any other person who is entitled to registration must apply for registration following the applicable Tax Law provisions.
According to Article 6(2) of the Tax Procedure Law, a Registrant must also include his TRN in any correspondence with the Authority or other pertinent parties per the Tax Law. Within 20 business days following the event, notify the Authority of any scenario that would necessitate the correction of information relating to his Tax record recorded by the Authority.
Methods of Tax Deregistration in the UAE
Tax registration may be either mandatory or optional, as specified in Articles 13 and 17 of the VAT Law. Tax deregistration might be either mandatory or optional, too. The steps involved in deregistering for VAT are covered in depth in the following article.
Tax Deregistration Required
According to Article 21 of the VAT Law, the Taxable Person must obliquely apply to the Authority for deregistration in the following circumstances:
- The individual stops making taxable supplies and has no plans to do so in the ensuing twelve (12) months.
- The annual purchases or expenditures for the twelve (12) months that have passed or the next thirty (30) months don’t exceed the voluntary registration level of AED 187,500.
The application for deregistration must be submitted within 20 business days of the day the requirements for deregistration were satisfied, as stated in Article 14 of the Executive Regulations. According to Executive Regulations Article 14(3), mandatory deregistration will begin on the last day of the period in which the deregistration requirements are satisfied.
Also, read about: UAE VAT Penalties – Tax Registration in UAE.
Voluntary Deregistration of Taxes
According to Article 22 of the VAT Law, a Taxable Person may voluntarily deregister if, after any month, the value of their Taxable Supplies for the preceding twelve (12) months does not surpass the AED 375,000 mandatory registration level.
However, according to Article 23 of the VAT Law, to be entitled to seek deregistration, a person who registered voluntarily must have done so for at least twelve (12) months.
According to Executive Regulations Article 14(7), voluntary deregistration shall be effective as of the date chosen by the registrant or, in the absence of a preferred date, as of the day the request is made.
The Prerequisites for Tax Deregistration
Deregistration (mandated or optional) is not permitted until all VAT returns have been filed and all unpaid VAT payments and penalties have been fully settled, according to Executive Regulations Article 14(5). The tax advisors in UAE step in at this point to help you in the process.
