VAT Deregistration in the UAE
Eligibility · EmaraTax Application · Final VAT Return
If your business stops making taxable supplies, or your turnover falls below the VAT thresholds, you may have to cancel your VAT registration. A mandatory application is due within 20 business days, and a late one costs AED 1,000 plus AED 1,000 a month. We confirm whether you must or can deregister, prepare the application and file your final VAT return.
What's Included
How VAT Deregistration Works
When deregistration is mandatory
You must apply if you stop making taxable supplies, for example because you close or sell the business, or if your taxable supplies over the past 12 months are below the AED 187,500 voluntary threshold. The application is due within 20 business days of that event.
When you can choose to deregister
If your taxable supplies are below the AED 375,000 mandatory threshold but above AED 187,500, you can apply to deregister. If you registered voluntarily, you cannot deregister within 12 months of your registration.
Clear everything outstanding
The FTA approves deregistration only when all returns are filed and all tax and penalties are paid. We check your EmaraTax account and deal with anything outstanding before applying.
File the final return
After approval, a final VAT return and any tax due must be submitted within 28 days of the deregistration date. VAT is due on business assets and stock you still hold on which you recovered input VAT, so we include them in the final return.
VAT Deregistration: Key Rules
The FTA approves deregistration only once all returns are filed and all tax and penalties are paid. Corporate Tax deregistration, if it applies, is a separate application.
Transparent Pricing
* The fee depends on how many returns are outstanding and is confirmed after a free consultation. No hidden charges.
Frequently Asked Questions
Does cancelling my trade licence cancel my VAT registration?
No. VAT deregistration is a separate application to the FTA on EmaraTax. Until it is approved, you remain registered and must keep filing returns, and the late application penalty can apply.
What happens to my stock and business assets?
If you recovered input VAT on goods or assets you still hold when your registration is cancelled, VAT is due on them as a deemed supply. We value them and include the VAT in your final return.
What is the penalty for applying late?
AED 1,000 for missing the deadline, then AED 1,000 for each further month, up to a maximum of AED 10,000. Penalties for late returns or late payment are charged separately.
Can I deregister if I still make some taxable sales?
Only if your taxable supplies are below AED 375,000 a year and you did not register voluntarily within the last 12 months. If they are above AED 375,000, you must stay registered.
What happens to a VAT credit balance when I deregister?
You can request a refund of any excess VAT credit through EmaraTax, subject to the five-year time limit for refunds. We check your balance and include the refund request where it applies.
Cancel Your VAT Registration Without Penalties
Book a free consultation and we'll confirm whether you must deregister, your deadline and what the final return will include.