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VAT Deregistration in the Event of Company’s Liquidation in UAE



When the company’s business is liquidated, full control of the property will be transferred to the liquidation officer and it will be forced to close immediately. Upon complete completion of the closure, the company owner will be removed from the VAT registration list.

However, this process can take a long time, as the UAE imposes a number of complex steps to initiate the company cancellation process in relation to:

  • Closing all company accounts
  • Account statements (invoices)
  • Final statement
  • Telecommunications Services

Therefore, VAT Registration UAE supports its clients in all stages of liquidation. It is considered one of the most prominent tax consulting firms specialized in VAT Services in UAE. It employs the best certified tax advisors and agents.

The Necessity of Informing Government Agencies of the Company’s Closure

Upon closing the business and ceasing activity, it is necessary to officially cancel the trade license, to avoid any fines and violations accumulating on his business license in the event that:

  • License expiration.
  • Non-renewal.
  • Not canceling officially.
  • Failure to notify the Federal Tax Authority of cancellation of VAT registration.

If the service applicant is a partner in a joint-stock company, it is necessary to release him financially from any obligations towards creditors and partners, as well as to protect his interests and rights in the company when its activity is dissolved.

The Main Consequences of Liquidating the Company are the Following Points:

  • Its owner will not be able to be a partner in any company in UAE.
  • The owner will be able to continue working for a limited period only.

 Does Closing a Company Require Deregistration for VAT?

Yes, canceling VAT registration is a separate process from liquidating the company, as the registrant’s tax registration is only canceled if:

  • The registrant stops making taxable supplies.
  • The total tax and administrative fines due on him have been paid
  • Submit all the tax returns that must be submitted for the period in which the registrant was registered in accordance with what is stipulated in tax legislation.
  • Submit a cancellation request within twenty days of fulfilling the cancellation conditions
  • The value of supplies within twelve months was less than the voluntary registration threshold, i.e., 187,500 dirhams.
  • UAE tax system is based on voluntary self-compliance by taxable persons in registering, submitting returns, paying due taxes, or canceling registration.
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 Companies Official Closing in UAE

 There are many types of companies that can be closed in UAE, including:

  • Solidarity Company
  • Limited Liability Company
  • Limited partnership company
  • Public joint stock company
  • Private joint stock company (PJSC)

 A large part of the procedures for closing companies in Dubai concerns the final compensation of employees. The company owner or owners must cancel their employees’ visas and work permits.  As well as coordination with the General Administration of Residency and Foreigners Affairs in Dubai and the Ministry of Human Resources and Emiratizations, as according to UAE Labor Law, employers are required to give employees two months’ paid notice before terminating contracts. In many cases, employees can retain residency visas until the company’s business license expires.

Our Other Services Accompany the Liquidation of Companies

VAT Registration UAE, provides VAT registration and de-registration services, as well as tax declaration services and VAT recovery services.  We also provide high-quality services related to:

  • Tax declaration
  • Amending tax registration
  • Registering a tax group
  • Cancellation of tax registration
  • Cancellation of a tax group
  • Determine the tax period and modify its dates
  • Submit a tax return and claim a refund of input tax

VAT Registration UAE, employs experienced VAT specialists who are capable of representing their clients with the Federal Tax Authority in UAE and defending their interests before the Tax Disputes Committee. Thus, contact us for all VAT Deregistration complexities and we shall be glad to assist you. 


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