VAT Deregistration in UAE
What is VAT Return Filing?
In the UAE, VAT-registered businesses must apply for VAT deregistration in specific situations, such as when they cease making taxable supplies or their taxable turnover falls below the mandatory VAT registration threshold. The process is overseen by the Federal Tax Authority (FTA), and deregistration on time is necessary so that businesses avoid penalties for non-compliance.
It is very important to understand the proper time and procedure for deregistration to maintain UAE VAT compliance. A person will not be deregistered unless they have paid all tax and administrative penalties due and filed all tax returns including any outstanding returns as well as the final tax return.
VAT Registration UAE provides reliable VAT deregistration services throughout the UAE to assist businesses with their deregistration needs. Our tax consultants handle precise filing and correct documentation while ensuring full VAT compliance which saves your time and prevents mistakes.
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VAT Deregistration Services in UAE
Our professional VAT deregistration services in UAE are designed to help businesses deregister from VAT smoothly and efficiently. Our tax consultants ensure full compliance with FTA rules and assist you with preparing all required documents, completing final VAT returns, and submitting your deregistration application on time.
Whether you’re a small business or a large company, we offer personalized support for:
- VAT deregistration in UAE
- Handling FTA communications
- Avoiding late penalties
- Resolving pending VAT liabilities.
What is VAT Deregistration?
The Federal Tax Authority (FTA) requires VAT deregistration when a business no longer meets the requirements for VAT registration in the UAE. After deregistration your Tax Registration Number (TRN) becomes inactive and you will no longer need to submit VAT returns or apply VAT to your supplies. Businesses must complete this process when they no longer qualify for VAT registration.
Who Can Apply for VAT Deregistration in UAE?
- Businesses That Stop Making Taxable Supplies: Where a business stops making taxable supplies (goods or services liable for VAT) and does not expect to carry out any taxable supplies in the next 12 months, VAT mandatory deregistration is required. Only registered tax agents or authorized personnel can submit the deregistration request via the FTA online portal.
- Businesses Whose Turnover Falls Below the Threshold:
- A business is required to deregister for VAT in the UAE if their taxable supplies for the last 12 months is less than the voluntary registration threshold of AED 187,500.
- Likewise, a business may choose to deregister for VAT voluntarily if their taxable supplies for the last 12 months is less than the mandatory registration threshold of AED 375,000.
- Tax Groups (VAT Group Deregistration):
Deregistration can be applied to a VAT group when:
- The group is no longer able to meet the qualifying conditions for remaining a group (e.g., financially unrelated).
- The entities want to separate and register individually.
- All members of the group have stopped making taxable supplies.
- Changes in Business Activities: If the nature of your business changes and it no longer involves taxable supplies, it is possible to cancel registration.
Mandatory vs. Voluntary VAT Deregistration
VAT deregistration can be mandatory or voluntary:
- Mandatory Deregistration: A registrant is required to deregister for VAT if:
- The person ceases to make taxable supplies; or
- The person is still making taxable supplies but the value of these supplies made during the preceding 12 calendar months is less than the voluntary registration threshold of AED 187,500.
In the above cases, the registrant is required to apply for deregistration within 20 business days from the date he becomes liable to deregister.
- Voluntary Deregistration: A registrant may apply for deregistration if:
- The person is still making taxable supplies but the value of these supplies made during the previous 12 months was less than the mandatory registration threshold (AED 375 000); and
- In the case the person was registered on a voluntary basis, 12 months have elapsed since the date the person was registered. Or,
- The person only makes zero-rated supplies and the FTA granted the person an exception from registration
VAT Deregistration Process in UAE
- Log in to your EmaraTax account: Access the EmaraTax portal with the registered credentials. This portal is for all tax-related purposes by the Federal Tax Authority.
- Access Taxable Person Account and proceed to VAT: After logging in, locate the section dealing with your VAT registration details to ensure that you are operating on the right records.
- Click on ‘Actions’ and select ‘DeRegister’: An ‘Actions’ menu will appear under VAT. Click ‘DeRegister’ to start your application for VAT deregistration.
- Fill out the application form and upload the relevant documents: Fill out the given form with accurate business details and VAT account-related data. It is also required to upload relevant documents, such as evidence for cessation of taxable supplies or closure of business.
- Submit Application: After verifying that the entries are correct and that all details are accurate, submit your application form. Following this, the FTA will process your request.
Documents Required for VAT Deregistration in UAE
In the UAE, depending on the reason for VAT deregistration and the type of business involved, different documents are required. Below is a table that explains different cases for required documents:
| Scenario | Required Documents |
| Business no longer making taxable supplies / License cancellation | – Cancelled trade license copy – Liquidation letter or Board resolution – Latest financial statement (Trial Balance, P&L, Balance Sheet – Audited/Unaudited) – Labour letter confirming number of employees |
| Sale of license | – Old and amended sales contract/license – Amended company setup contract – Financial turnover template (from date of registration) – Labour letter confirming number of employees |
| Natural person ending activity | – Proof of business cessation – Financial turnover template – Official letter/undertaking stating no taxable supplies in next 30 days |
| Supplying exempt or out-of-scope goods/services | – Chart of business itinerary (suppliers, importers, customer locations) – Financial turnover template – Latest financial statements |
| Taxable supplies below voluntary threshold (AED 187,500) | – Financial turnover template – Latest financial statements – Declaration on company letterhead (not exceeding threshold in next 30 days) |
| Taxable supplies above voluntary but below mandatory threshold (AED 187,500 – AED 375,000) | – Financial turnover template – Official letter (not exceeding mandatory threshold in next 30 days) |
| Duplicate TRN case | – TRN number in use – Signed company letter (confirming returns will be submitted using specified TRN) |
| Branch registration | – TRN certificate of head office – Company letter confirming declarations under parent TRN |
| Individual institution | – Signed letter listing all VAT-registered individual institutions & TRNs – Financial turnover template |
| General Notes | – Accepted file types: PDF, Excel, DOC, JPG, PNG, JPEG – Maximum file size: 5 MB |
Timelines and fines for VAT deregistration:
As per the FTA guidelines:
- A mandatory application for deregistration should be submitted within 20 business days from the date the person becomes eligible.
- Voluntary deregistration does not have a specific time limit but should be done according to FTA procedures .
- Late application penalty: The failure of the Registrant to submit a deregistration application within the timeframe specified in the Tax Law will result in administrative penalties of AED 1,000 in case of delay, and on the same date monthly thereafter, up to a maximum of AED 10,000.
The FTA takes a maximum of 20 business days to review and approve your application. If the final VAT return is not submitted or there are dues pending, there could be delays.
Common Challenges in VAT Deregistration and How to Avoid Them
Most common problems that businesses face are:
- Incomplete or incorrect records
- Not filing VAT returns
- Outstanding VAT liability
- Ineligible for deregistration.
Avoid such problems by working with tax consultants offering VAT deregistration service in UAE. They handle the complete process and compliance with FTA rules that lets you do business.
Why Choose Our VAT Deregistration Services in UAE?
There are many benefits to choosing our VAT deregistration services in UAE. This include:
- Expert Knowledge: Our tax consultants are well versed in the laws of UAE VAT and all VAT deregistration procedures.
- Efficiency: We offer assistance in all steps of the process which saves your time and effort.
- Accuracy: We ensure that all documents are in order and the application has been duly filled up.
- Compliance: We ensure full compliance with FTA regulations so that your risk of penalties is minimized.
- Support: We render support and assistance throughout the process of VAT deregistration in the UAE.
- Peaceful mind: Our professional expertise allows you to feel at ease while we handle your VAT deregistration needs throughout Dubai and all other UAE locations.
Get in touch with us today if you wish to know more about our VAT deregistration services. Let us make your journey hassle-free and smooth.
Frequently Asked Questions (FAQs)
Q4. What happens if my VAT deregistration request is rejected?
If the Federal Tax Authority (FTA) rejects your VAT deregistration request which means you will stay VAT registered and must continue meeting all VAT requirements. When your VAT deregistration request is refused, the Federal Tax Authority conveys the cause of rejection. To address this cause, you must rectify the issues and apply again for approval.
Q5. What are the penalties for not deregistering on time?
The failure of the Registrant to submit a deregistration application within 20 stipulated business days will result in administrative penalties of AED 1,000 in case of delay, and on the same date monthly thereafter, up to a maximum of AED 10,000.
Q6. What is the turnover threshold for VAT deregistration in UAE?
A business is required to deregister for VAT in the UAE if their taxable supplies for the last 12 months is less than the voluntary registration threshold of AED 187,500. Likewise, a business may choose to deregister for VAT voluntarily if their taxable supplies for the last 12 months is less than the mandatory registration threshold of AED 375,000.
Q7. What are the steps involved in VAT deregistration?
The procedure includes checking for eligibility, collecting required documents, using the FTA portal to submit the application, filling out the form, adding documents, submitting the application, FTA review and obtaining the Deregistration Certificate upon approval.
Q8. Where do I submit my VAT deregistration request?
You need to file your vat deregistration request through the Federal Tax Authority’s (FTA) EmaraTax digital platform.
Q9. How long does the VAT deregistration process take in UAE?
The VAT deregistration process timeline in UAE is 20 business days from the date the completed application was received by FTA.
Q10. How much is the fine for late VAT deregistration in UAE?
AED 1,000 in case of delay, and on the same date monthly thereafter, up to a maximum of AED 10,000.
Q11. What happens if my VAT deregistration request is delayed?
Any delay in deregistration may cause you an administrative Penalty of up to a maximum of AED 10,000. You may also have to keep filing VAT returns, expect to be audited by the Federal Tax Authority (FTA), and face reputational damage.
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