Value Added Tax (VAT) is an important part of the tax system in
the United Arab Emirates (UAE). Introduced in 2018, the current
standard UAE VAT rate, applied to most goods and services, is 5%.
There is also a 0% rate, which applies to a limited number of goods
and services.
Businesses must register for VAT if their
turnover exceeds the threshold set by the UAE Federal Tax Authority
(FTA), which is currently AED375,000 (c. USD100,000). However,
there are circumstances when a business might want or need to
deregister for VAT. This article will set out the process, the
reasons for deregistration and the implications of doing so.
Why Deregister from VAT?
Deregistering from VAT can be beneficial under certain
circumstances, but it's essential to make this decision
strategically.
