Two years have passed since the introduction of VAT in the UAE and every business here is mostly aware of the importance of VAT registration with the Federal Tax Authority (FTA). However, one crucial process that often gets downplayed by the eligible business is VAT deregistration. VAT deregistration is as important as VAT registration and the companies should have a better understanding of when and under what circumstances they should apply for VAT deregistration in the UAE otherwise heavy penalty may be attracted for late application for VAT deregistration. The companies need to apply for deregistration within 20 business days of becoming eligible for VAT deregistration. The failure to apply to deregister within this timeframe would attract a penalty of AED 10,000.
Source: jcauaeaudit.com
