Article 13 - Deregistration

Where a Taxable Person ceases to carry on an Economic Activity, including cases where a legal Person ceases to exist as a legal Person that Taxable Person shall deregister. Deregistration will take effect from the date determined by the Authority after its approval of the deregistration. In all cases, the taxable person must settle all his tax obligations before the approval of the cancellation request.^[17]

Where at the end of any month, a Non Resident Taxable Person has not made any Taxable Supplies in respect of which it is obligated to report Tax in the Kingdom in the most recent twelve-month period that Taxable Person must deregister. Deregistration will take effect from the date determined by the Authority after its approval of the deregistration.

At the end of any month, a resident Taxable Person is required to deregister where all of the following occur:

1. The total value of the Taxable Person's annual Supplies or annual expenses in the twelves months then ended does not exceed the Voluntary Registration Threshold,

2. The total value of the Taxable Person's annual Supplies or annual expenses in the twenty - four months then ended does not exceed the Mandatory Registration Threshold,

3. The total value of the Taxable Person's annual Supplies or annual expenses in that month and the eleven months following is not expected to exceed the Voluntary Registration Threshold.

A Taxable Person shall apply for deregistration to the Authority within thirty (30) days of any of the cases prescribed in the first, second or third Paragraphs of this Article occurring. In cases where the Taxable Person does not apply for deregistration to the Authority, the Authority may deregister that Person. In these cases, the Authority will issue a notification.

1. In cases where the Taxable Person registered with the Authority does not submit a request to deregister in accordance with Paragraphs 1, 2 and 3 of this Article, The Authority may deregister the Taxable Person and the deregistration shall be effective from the date on which the Person's eligibility for registration ceased, or from any other date determined by the Authority.

2. Where the Authority determined that a registered Person was not eligible for registration, the Authority may deregister the Person as of the date it determines.

In all cases mentioned in this Paragraph, the Authority must issue a notice to the Taxable Person upon deregistration indicating the effective date of deregistration.^[18]

At the end of any month, a Taxable Person who is not required to deregister may apply to deregister where both:

1. its annual Supplies made in the Kingdom in the last twelve months do not exceed the Mandatory Registration Threshold,

2. its expected annual Supplies made in the Kingdom in that month and the eleven months following do not exceed the Mandatory Registration Threshold.

The deregistration takes effect on the date determined by the Authority after its approval of the deregistration.

Without prejudice to the Authority's right to deregister a Taxable Person pursuant to Paragraph 5 of this Article, a Taxable Person who has voluntarily registered with the Authority pursuant to Article 7 of these Regulation may not submit a deregistration request if the Taxable Person did not cease carrying on an Economic Activity and twelve months have not lapsed since their registration.^[19]

An application under the fourth Paragraph of this Article or under the sixth Paragraph of this Article must be made in an application in the form prescribed by the Authority.

The Authority may request documentation from the Taxable Person to evidence that the Economic Activity has ceased or to evidence the value of Taxable Supplies made or expected to be made.

The Authority may refuse an application for deregistration where it does not have sufficient evidence that the Taxable Person is eligible to deregister.

The Authority will issue a notification that confirms the deregistration of a Taxable Person or the refusal of an application to deregister.

In the event of the disposal of the activity, the disposer must notify the Authority of the disposal within thirty (30) days from the date of disposal, in accordance with the mechanism determined by the Authority. If the disposer fails to cancel his registration, the Authority shall cancel the registration in accordance with the provisions of paragraph 4 of this Article.^[20]

The taxable person whose registration has been cancelled must retain invoices, notices, books, and records as required under this Regulation for the periods specified therein under the provisions of Articles 60 and 61 of this Regulation. In all cases, the cancellation of the taxable person’s registration shall not exempt him from the obligation to pay any dues owed to the Authority that were incurred prior to the date of registration cancellation.^[21]