VAT Deregistration means to cancel their VAT registration with FTA.  I noticed in the market there is a lot of confusion going on related to vat registration. Let’s understand about Deregistration. Suppose Business is registered under the VAT but businesses stop making taxable transactions. Then it’s mandatory for a business to cancel their registration with FTA (Federal Tax Authority). The business has to submit the application for deregistration  With the required documents to FTA, then FTA will cancel the registration. 

Deregistration is important as VAT registration and businesses should have a good understanding of which circumstances they should apply for deregistration otherwise they will get heavy plenty from FTA for late application for VAT deregistration. Businesses must apply for VAT deregistration within 20 business days of becoming eligible for  VAT deregistration. If a business gets late then has to pay AED10,000 plenty that is charged by the FTA.

The Tax payable business must know all the procedures of the  Deregistration. The expert advice of the best VAT consultancy services should be taken to know how to register or deregister. On time deregistration and in the right way prevents the plenties.

VAT Deregistration Eligibility

It is an online process. Businesses and individuals who are registered can apply for deregistration in two situations.

1. After registering with VAT If the business annual turnover is not above AED 187,500, They can apply for the Deregistration.
2. If a business is no longer dealing with the taxable supplies then they have to apply for the deregistration.

Under FTA guidelines Deregistration there are two norms for deregistration.

1. Compulsory VAT-Deregistration
2. Voluntary VAT Deregistration

Compulsory VAT-Deregistration

The business tax payable transactions are below the voluntary registration threshold limit. In this condition, the registered business and individuals become eligible for the Compulsory VAT-Deregistration. Businesses must apply for the deregistration to avoid the plenties.

Voluntary VAT Deregistration

The business applied for the Voluntary registration on 1st April after 12 months on 31st March business not made tax payable transaction equal to AED 187,000, The business and individuals shall analyze and evaluate the tax payable transaction for the next 30 days if the taxable supplies will exceed then they can apply for VAT Deregistration in the next 20 days.

Guide To Apply For VAT Deregistration

It’s an online process and easily accessible with the FTA portal. To apply for the VAT deregistration, Companies and individuals have to submit the application form to FTA along with required documents and the valid reason then FTA will verify the reason and documents and If the reason is valid then FTA will approve the Deregistration. FTA approves the status of the return, Outstanding tax Payment, and any plenty that is pending. If FTA found any outstanding and plenty then you have to clear them otherwise FTA will not approve the deregistration.

Deregistration For VAT Group

The Group vat deregistration is similar to the individual’s deregistration. There only Criteria apply for it.

1. VAT Deregistration approves when the group is no longer meets the considered conditions.
2. The tax status of the group may lead to tax evasion then the FTA approves the Deregistration 
3. If the constituent member of the company is no longer financially associated with the group.

Procedure of the VAT Deregistration

Step 1- You have to login into your FTA account. On the homepage, you can see the option of Deregistration.

Step 2 - Click on the Deregistration button then the form will open. Fill the form correctly and send it for review and approval.

Now you have applied for the  VAT Deregistration successfully. FTA will review the application and then confirm it. When FTA approves the Deregistration, you can check the status there will be pre-approved status at the place of the VAT Deregistration. Now you have to submit the final return, after that, you have to clear all the outstanding liabilities in order to complete the VAT Deregistration process. 

Hope this short guide helps you. If you have any questions and doubt feel free to reach risians accounting. Risians accounting is a certified and FTA-approved accounting firm in dubai. Allow us to take care of your business accounting, VAT registration and deregistration, auditing, and other accounting work.

Being the best accounting firm in Dubai, We are asked by every client that what is the difference between the internal and external audit. So today, we are writing about the internal and external audit differences and similarities. Before start let’s take a look at what is auditing. 

Auditing is the process of inspection and evaluation of the various accounts, a financial statement, etc. To ensure that all the business management accounts are recorded systematically and accurately in the proper manner of accounting law and regulation. By auditing process, auditors detect fraud, error, etc, and save the management or company from potential loss and harm.

Purpose of Auditing

The purpose of the auditing is to review the information is right and accurate or not, that is presented in the accounting books and financial accounting books. The presented information in cash flow, balance sheet, income statement, etc are matching right or not. As per Government accounting standards, the auditor evaluates the financial report of the organization. The main purpose of auditing is to find any mistake, fraud, a loophole. If the accounting system is not working as per government law and management or company policy then have to face any loss, harm, and plenty from the government. Well, the future is uncertain nobody can judge that what will happen next? The auditor do a prediction for the organization by a current and previous financial statement and give the opinion. Now you are thinking one side you are saying future is uncertain and now your saying auditor predict the future of the company by the financial statement. Well, We are 100%  agree future is uncertain but the auditor shares their opinion by evaluating the past and current financial health and give advice for accomplish a company-oriented goal or define a new goal. The auditor’s advice helps the organization to take more control over the work and be more productive effectively.

Auditor suggestion is very important for organizations and single-owner businesses.

1. It helps in achieving the goal or set a new goal.
2. More control over the business
3. Save business from fraud.
4. Auditor report is very helpful for getting fund from investors, bank, etc.
5. Save the business from the government plenty and legal action against the business. 

Generally, auditing is two types are:-

1. Internal Audit
2. External Audit

Internal Audit 

In an internal Audit, the Auditor audit the internal environment of the organization and make sure that all the work is going as per rules and regulations, increase the control over the internal environment and make the production department more effective. The auditor gathers all the information and shows the report that contains how business is going, where is a mistake, error, fraud, risk area, etc, how we can reduce the risk, and how we can be more productive. The internal auditor also makes sure that all the implemented policies are working properly.

External Auditing

External auditing is an independent evaluation of financial statements. External is done by the independent outside person of the organization and plays a critical role. The interest of conflict is less likely to happen as compared to an internal audit. External Audit provides valuable reports for business and government. The purpose of external auditing is to review business account to show that the business account is accurate and complete.

Internal V/S External Auditing

Your Best Auditing Firm - Risianss Accounting 

Being a leading audit firm in Dubai, we have a special audit team who have 20+ years of working experience. Our auditing team provides support for your business accounting and management solution and cover advice & guidance. It doesn’t matter what is your need relating to auditing and accounting. We aim to provide our client’s full insight into their corporate strategies, business processes, and financial reports and deliver tailor-made solutions. Risians Accounting is a registered auditing firm in Dubai. Our Methodology of auditing will minimize your business routine office work and make work more productive effectively.

In the UAE tax agents have been working here for many years to provide legal support to the businesses, but after the introduction of the VAT tax in Dubai on 1st Jan 2018, the demand for the tax agent in Dubai increased rapidly. 

Many issues and difficulties might affect your business badly. So, FTA (Federal Tax Authority) encourages the business owner to hire the tax agent. The tax agent helps the business to run a business smoothly. In UAE, There are many tax-certified agencies, you can hire them and take their services. But Under the roof Risians Accounting & Auditing, you can only get the best to best Tax Agent Service in Dubai. We have top certified players for taxes and have decades of working experience in many different industries and projects.

Our tax agents first understand the framework of business; give advice and assistance for individuals and companies for tax filings and returns. Our consultant discussed every single step deeply which would help the company in saving money and payment of unnecessary taxes along with following government rules and regulations.  

Recommendation: - You can meet with plenty of individual tax agents and tax agent agencies. But you should hire only the perfect tax agent for your business industry. Agent or agency should know your business and should have working experience. To know about this, it’s your responsibility to ask them questions relevant to your business tax-related or accounting. By only doing this you can hire perfect service. Don’t think this and that agent or agency demanding a low or high price. Keep in mind knowledge and experience is important.

Why should you hire a tax agent or agency?

• Make you understand the government policy and regulation because the tax policies are typical only tax agent can understand the policy and those who have only deep tax knowledge otherwise people get confused.
  
  
• Tax agent works as an intermediate between the FTA (Federal Tax authority). Keep the business true with the tax system and increase the awareness regarding tax.
  
  
• Tax agents help businesses in saving money on tax legally.
  
  
• Tax agents always give suggestions and recommendations to run a business smoothly and get the made changes in the business according to the new and existing tax policies.
  
  
• Tax agent consults the business for the registration on the time and ensuring that they meet the registration criteria including Tax Group registrations.
  
  
• Tax agent shares their work experience to make business more profitable. 
  
  
• If a business doing any illegal activity and taxation practice so tax agents can detect it easily and save you from potential legal troubles. For doing business smoothly and keep your business profile clean you need a certified professional tax agent.
  
  
• Tax agents check the records, files, and documents that are maintained by the taxable person for accuracy and also review the tax returns filed.
  
  
• We can represent the agent as a tax payable person in case of FTA queries while auditing. But tax agents should know the Arabic language so that they can interact with FTA.
  
  
• By hiring a tax agent we save tons of time because you don’t need to worry regarding the tax filing and return. A professional Tax Agent managing the part of taxation.

Certified Tax Agent 

Is not easy to become a tax agent in UAE by FTA? You have to pass so many exams and meet requirements.

Requirements to be a Tax Agent are following:-

• FLuency in Arabic and English
• The candidate should have a bachelor or master degree in accounting or tax or law
• Should have 3 years of working experience in accounting or tax or law. 
• Don’t have any criminal record.
• The candidate should be physically fit.

If you are looking for the best tax agent in the UAE so, a Risians Accounting & Auditing Firm will be the best option for you. If you have any questions in your mind related to the tax, accounting, and tax agent so feel free to call us we will assist over the call that will be free.