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.
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:
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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.
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Deregistration can be applied to a VAT group when:
Mandatory vs. Voluntary VAT Deregistration
VAT deregistration can be mandatory or voluntary:
In the above cases, the registrant is required to apply for deregistration within 20 business days from the date he becomes liable to deregister.
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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:
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| 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:
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:
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:
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.
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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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