How to Deregister VAT in the UAE

How to Deregister VAT in the UAE: Requirements and Step-by-Step Process

VAT deregistration in the UAE is a crucial compliance step for businesses that no longer meet the registration criteria or have ceased operations. Understanding how to deregister VAT in the UAE helps you avoid penalties, stay compliant with the Federal Tax Authority (FTA), and close your tax obligations smoothly.

This guide explains the requirements, eligibility, mandatory and voluntary deregistration rules, and the full process for submitting your deregistration request through the FTA portal.

What Is VAT Deregistration in the UAE?

VAT deregistration is the official process of canceling your VAT registration number (TRN) when your business no longer needs to be registered for Value Added Tax.
Knowing how to deregister VAT in the UAE ensures you complete the procedure correctly and avoid unnecessary delays or penalties.

Who Must Deregister VAT in the UAE?

A business must deregister VAT when:

1. Business Has Stopped Making Taxable Supplies

If your company has closed down permanently or no longer conducts taxable activities, you must submit a deregistration request.

2. Taxable Supplies Fall Below AED 187,500

If your taxable turnover in the last 12 months falls below the mandatory threshold, VAT deregistration becomes compulsory.

3. Transfer of Business Ownership

If your business is sold or transferred to another entity, its VAT registration must be canceled as part of the transition.

Who Can Voluntarily Deregister VAT in the UAE?

You may choose to deregister voluntarily if:

1. Taxable Turnover Falls Below AED 375,000

If your taxable supplies or expenses subject to VAT drop below the voluntary registration threshold, you may apply for deregistration.

Penalties for Late VAT Deregistration

Failing to submit your deregistration request on time leads to significant fines:

• AED 1,000 for the first delay

• AED 2,000 for repeated delays

• Additional compliance audits may be triggered

Understanding how to deregister VAT in the UAE on time helps you avoid these penalties.

Documents Required for VAT Deregistration

To complete your application, prepare:

• Trade license

• Emirates ID & passport of authorized signatory

• Financial statements

• Proof of business closure (if applicable)

• Supporting documents showing turnover below thresholds

• Latest VAT return filings

How to Deregister VAT in the UAE: Step-by-Step Process

Here’s the complete process to help you easily understand how to deregister VAT in the UAE through the FTA portal:

Step 1: Log in to the FTA Portal

Visit the FTA e-services portal and log in using your registered credentials.

Step 2: Select VAT Deregistration

Navigate to “VAT” → “Deregistration” and choose the TRN you want to cancel.

Step 3: Fill in the Deregistration Form

Provide accurate information on:

• Reason for deregistration

• Last taxable supply date

• Supporting financial evidence

Step 4: Upload Supporting Documents

Attach all required documents to prove eligibility.

Step 5: Submit the Application

Review and submit your request. The FTA may ask for additional details.

Step 6: File All Pending VAT Returns

Even after applying, you must file all remaining VAT returns and pay outstanding dues.

Step 7: Receive Confirmation

Once approved, you will receive a VAT Deregistration Certificate from the FTA.

How Long Does VAT Deregistration Take?

The FTA typically processes deregistration requests within 20 business days, but the timeline may extend if additional documents are required.

Final Thoughts

Knowing how to deregister VAT in the UAE is essential for maintaining compliance and avoiding penalties. Whether you are closing your business, restructuring, or no longer meeting VAT thresholds, completing the process correctly ensures a smooth exit from the tax system.