The entity must deregister from VAT if it is unable to meet the threshold set by the Federal Tax Administration (FTA). FTA suggests the following thresholds for mandatory and voluntary registration: AED 375,000 and AED 187,500, respectively. The UAE VAT law stipulates that a deregistration application must be submitted within 20 days of a drop in taxable sales below the Voluntary criterion or the cessation of taxable sales.

Our VAT experts endeavor to review the details of our clients’ taxable supplies at regular intervals to ensure that the deregistration requirement has not been met, and to notify the clients in advance so that the AED 10,000 fine can be avoided. On multiple occasions, we have expeditiously deregistered Small and Medium-Sized Businesses from the VAT, thereby avoiding penalties. Our specialists always consider the events affecting the taxable supplies of our clients and are proactive in assisting them to comply with the applicable laws and regulations to avoid penalties and other adverse consequences.