• Malik, Bur Dubai, UAE

VAT Deregistration

vat deregistration in dubai

VAT Deregistration in Dubai, UAE

At Business Tax in UAE (BTU), our expert team offers businesses the most effective, reliable and accurate VAT Deregistration services in the UAE. We ensure a smooth and hassle-free process for businesses to complete and meet the requirements of the Federal Tax Authority (FTA). Our VAT Consultants can help businesses with:
  • Checking if they are VAT registered or not
  • Preparing required documents,
  • Using the emaratax portal to submit applications, and
  • Answering queries from FTA to ensure a proper VAT cancellation in UAE.
  • Businesses might want to deregister their VAT for several reasons such as closing down of business, decrease of taxable supplies, reorganization or no longer meeting the VAT registration requirements. Proper completion of the VAT Deregistration Process in UAE is necessary to avoid maintaining compliance, unnecessary administrative burden, and potential penalties.

What is VAT Deregistration in UAE?

VAT Deregistration in UAE is the official process through which a business can deregister their VAT registration from the Federal Tax Authority (FTA). If approved, the VAT registration of the taxable person is cancelled and the business is no longer required to submit future VAT returns or to collect VAT on taxable supplies (subject to the conditions specified).

When Business Must Apply for VAT Deregistration in UAE

The Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT) provides for cancellation of the taxable person's VAT registration under certain conditions. Administrative penalties may result if not applied timely.
Mandatory deregistration (Article 21) shall be made if:
  • You cease making taxable supplies, or
  • The value of supplies that you are liable to tax over the last 12 consecutive months is less than AED 187,500 (Voluntary Registration Threshold) and total value of supplies does not exceed the Voluntary Registration Threshold during the coming 30-day period.
Voluntary deregistration (under Article 22& 23) is available if:
  • The value of Taxable Supplies of a registrant (business) during the past (12) months was less than the Mandatory Registration Threshold of AED 375,000.
  • A Registrant may not apply for Tax Deregistration within (12) months of the date of Tax Registration.
  • Applications must be submitted within 20 business days from the date the taxable person becomes required to deregister. The Cabinet Decision No. 129 of 2025 imposed an administrative penalty for late submission.

Who Requires VAT Deregistration Services in UAE?

  • Businesses no longer trading or making taxable supplies.
  • Companies which have seen their taxable turnover drop below AED 187,500 (mandatory) OR AED 187,500 – 375,000 (voluntary).
  • Entities undergoing liquidation, sale of licence or changing their business activity (exempt / out of scope supplies).
  • Natural persons or individual establishments ceasing activity.
  • Tax groups or branches requiring TRN cancellation.
  • Businesses seeking to avoid ongoing zero-return filing and compliance costs.

Documents Required For VAT Deregistration in UAE

Requirements vary by basis of deregistration. Common documents include:
  • Cancelled trade licence / liquidation letter / board resolution
  • Latest financial statements (trial balance, P&L, balance sheet – audited or unaudited)
  • Financial turnover template (taxable income & expenses from registration date)
  • Letter from Ministry of Human Resources & Emiratisation confirming employee numbers (where relevant)
  • Official declaration on company letterhead confirming no expectation of exceeding thresholds in the next 30 days.
  • Proof of cessation of activities, sales contracts, or charts of suppliers/customers for out-of-scope cases.
  • Supporting invoices or other evidence as requested.
  • BTU prepares and reviews the complete document pack to minimise FTA queries or rejection.

A step-by-step VAT deregistration process via EmaraTax.

  • Login to your account in EmaraTax or via UAE PASS.
  • Go to Taxable Person dashboard → VAT tile → Actions → De-Register.
  • Choose the right basis for deregistration and add the eligible/effective date.
  • Attach supporting documents and add taxable supplies/expenses (template provided).
  • Authorised signatory confirmation and Submit.
  • Once pre-approved, submit final VAT Return (due by 28 days from the effective deregistration date) and pay remaining tax liability or penalty. If in credit, you should apply for a refund.
  • Once all returns are submitted and liabilities paid, FTA will provide a deregistration certificate (downloadable from the dashboard).
  • You are still required to file returns until you get full approval and submit the final return. You remain responsible for filing returns until full approval and final return submission.

Penalties for Non-Compliance

  • A registrant who does not submit the VAT deregistration application on time will face a late-submission penalty of AED 1,000 per month of delay, up to a maximum of AED 10,000.
  • Non-filed returns or unpaid liabilities can delay approval or trigger additional penalties.
  • Incorrect or incomplete applications may result in delay, request for further details (another 20 business days) or application rejection.

VAT Deregistration Services Offered by BTU

  • Eligibility assessment against the current thresholds and law.
  • Preparation of necessary documents, including completion of financial turnover template.
  • EmaraTax application submission and subsequent FTA follow-up.
  • Submission of the final VAT return and liability/refund management.
  • Advice on record retention period (generally more than 5 years) and requirements after deregistration.
  • Assistance in more complex situations, such as liquidation, tax groups, supply of services outside scope, duplicate TRNs.
  • We will submit all necessary documents and applications accurately and promptly – so you will not risk any fines or cancellation if your TRN is delayed.

Get Professional VAT Deregistration Help in UAE

VAT Deregistration UAE requires proper evaluation of VAT obligations and proper documentation and compliance with FTA procedures. Business Tax in UAE (BTU) provides expert support for businesses seeking reliable VAT Deregistration Services in Dubai and across the UAE.
Our team helps businesses through the whole process of cancelling VAT and makes sure that the applications are correctly prepared and submitted according to UAE tax regulations.
Contact Business Tax in UAE (BTU) today for expert assistance with your FTA VAT Deregistration Application in UAE.

VAT Deregistration FAQ

VAT Cancellation in UAE can be obtained by businesses by filing a VAT deregistration application and complying with the necessary requirements via the FTA’s EmaraTax portal.

Yes. Businesses can be obliged to apply for VAT deregistration if they cease to carry on VAT taxable activities or cease to satisfy the VAT registration conditions.

Processing time will vary based upon the accuracy of the provided information, compliance status and if documents are needed or clarification is required by the FTA.

It is important that entities clear their outstanding VAT liabilities and fulfil any pending tax obligations prior to VAT deregistration.

Once approved, the business will have to fulfil its remaining VAT filing duties, such as the VAT final return (if applicable), and keep tax records, as provided in UAE VAT law.

Yes. Any company registered for VAT in the Free Zone, but qualifying for VAT deregistration, is subject to the same VAT deregistration requirements as any other registered company.

Yes. A UAE VAT Consultant can help with eligibility checks, application, compliance and liaising with the Federal Tax Authority.