VAT Deregistration in the UAE is an important process for businesses that no longer meet the requirements for remaining registered for Value Added Tax. Whether your revenue has fallen below the threshold your business has closed operations or your activities no longer fall under taxable supplies you must apply for VAT Deregistration in the UAE to stay fully compliant.
A lot of business owners get confused about when to apply how the process works, which rules apply and what documents are required. So this guide breaks down VAT Deregistration in the UAE in simple language so anyone can understand it clearly.
This article explains the full procedure timelines, fees documents, EmaraTax submission steps and every scenario where deregistration becomes mandatory. It also helps you understand how AB Capital Tax Services supports you through the entire journey.
Throughout this blog we will use the focus keyword VAT Deregistration in the UAE multiple times so this guide ranks at the top when people search for reliable information.
Understanding VAT Deregistration in the UAE
VAT Deregistration in the UAE is the formal process of removing your business from the FTA VAT register. You must do this when your business legally qualifies or when your obligations under the VAT law change.
The reason VAT Deregistration in the UAE exists is to maintain tax transparency and prevent inactive or ineligible businesses from remaining on the VAT system. Deregistration does not remove past responsibilities but it stops future VAT filings once complete.
This is why it is important to apply at the correct time and follow the full process without missing any steps.
Which Businesses Need VAT Deregistration
Businesses must apply for VAT Deregistration in the UAE when they no longer meet VAT registration requirements or when their operations have permanently changed. Common cases include:
- A business has stopped making taxable supplies
- A company has shut down
- A trade license has been cancelled
- Revenue falls below the voluntary registration limit of AED 187500
- Revenue is between voluntary and mandatory threshold
- The business only makes exempt supplies
- A natural person has fully stopped commercial activity
VAT Deregistration in the UAE must be completed even if you believe your business is inactive. As long as a trade license exists you must handle your tax status properly.
When VAT Deregistration in the UAE Becomes Mandatory
There are specific situations where the Federal Tax Authority requires you to apply for deregistration. These include:
- No taxable supplies
- Sale of business
- Liquidation
- Merging or restructuring
- Stopping business activity as a natural person
- No longer meeting the VAT thresholds
- Duplicate Tax Registration Number cases
- Switching from branch structure to parent company structure
Understanding these reasons is important because delaying VAT Deregistration in the UAE can result in fines.
Who Can Apply for VAT Deregistration in the UAE
Any taxable person can apply if they fall under:
- Companies
- Branches
- Free zone entities
- Individuals holding trade licenses
- Partnerships
- Natural persons conducting commercial activity
If you are unsure AB Capital Tax Services can evaluate your financials and determine whether VAT Deregistration in the UAE applies in your situation.
Requirements to Qualify for VAT Deregistration in the UAE
The Federal Tax Authority checks several conditions before approving the deregistration request. Some include:
- The business must have all VAT returns filed
- All outstanding VAT payments must be cleared
- Final VAT return must be prepared
- The business must officially meet deregistration criteria
- All supporting evidence must be submitted
- The business must confirm it will not exceed the VAT threshold within 30 days
VAT Deregistration in the UAE does not get approved until all compliance requirements are complete.
How to Apply for VAT Deregistration in the UAE
The VAT Deregistration in the UAE application is submitted through the EmaraTax portal. The process is straightforward if you prepare your documents correctly.
Step by Step EmaraTax Submission Guide
Step 1. Log in to the EmaraTax portal
You must sign in to your account using your credentials. If you do not have an account you must create one.
Step 2. Fill in the deregistration form
You will be asked to provide company details and reasons for deregistration financial information and supporting documentation. Take your time to ensure accuracy.
Step 3. Review the application
Before submitting, check the entire form carefully. Once satisfied, submit the VAT Deregistration in the UAE request for the Federal Tax Authority to review.
Fees For VAT Deregistration in the UAE
VAT Deregistration in the UAE does not have an application fee. It is free to submit through EmaraTax.
However businesses often incur compliance and documentation costs depending on their case such as:
- Audited or unaudited financial statements
- Liquidation documentation
- Government charges for license cancellation
There is no fee for applying but the accuracy of your documents matters for approval.
How Long Does It Take to Complete VAT Deregistration in the UAE
Submitting the online form usually takes around 30 to 60 minutes when all documents are prepared.
Once the Federal Tax Authority receives a fully completed application it can take up to 20 business days for approval.
This timeline may extend if additional information is requested or if the supporting documents are incomplete.
Documents Needed for VAT Deregistration in the UAE
Here is a simplified list of documents. Each scenario requires different evidence based on your business situation.
Business has stopped taxable supplies
- Cancelled trade license copy
- Liquidation or closure letter
- Board resolution if applicable
- Latest financial statements
- Labour ministry letter confirming employee count
Sale or transfer of license
- Old and amended contract copies
- Updated business setup contract
- Financial turnover templates
- Labour ministry letter
Natural person stopping business
- Proof of activity cessation
- Financial turnover template
- Official declaration confirming no future taxable supplies
Business below voluntary threshold
- Financial turnover template
- Latest financial statements
- Declaration confirming income will not exceed threshold in 30 days
Business making exempt supplies only
- Charts showing business itinerary
- Supplier and customer list
- Financial statements
Duplicate TRN issues
- TRN used
- Official stamped letter confirming only one TRN will be used
Branch structures
- TRN certificate of parent company
- Official letter confirming all returns will be submitted under parent TRN
All documents must be uploaded in accepted formats including PDF Excel Docs JPG PNG or JPEG under 5 MB.
Procedure to Complete VAT Deregistration in the UAE
Here is the action sequence:
Open EmaraTax dashboard
Navigate to your tax account and select VAT services.
Select Deregistration
Under VAT actions choose De Register.
Submit the process
Provide all details, upload required documents, review and submit.
VAT Deregistration in the UAE will only be approved if everything is correct and up to date.
Important Conditions to Keep in Mind
- All VAT returns must be filed until deregistration approval
- Final VAT payment must be settled
- You must declare future supply expectations honestly
- Documentation must match the business activity
- Errors can cause delays or rejection
- Deregistration certificate is issued only after approval
VAT Deregistration in the UAE is a compliance heavy process so you must complete every part properly.
How AB Capital Tax Services Supports You
AB Capital Tax Services, Dubai guides you through VAT Deregistration in the UAE from start to finish. Their tax team reviews your financials, prepares the full set of documents, ensures all returns are filed, supports your EmaraTax submission and follows up with the FTA until the deregistration is approved.
Many businesses struggle because they do not understand which documents match which deregistration case. AB Capital solves this by handling everything professionally and preventing delays or rejections.
If you want smooth VAT Deregistration in the UAE without stress you can book a consultation and let the experts manage the technical work.
Frequently Asked Questions
What happens after VAT Deregistration in the UAE is approved?
Once approved you can download the deregistration certificate from your EmaraTax account. This certificate proves that your VAT obligations have officially ended. You must still file your final VAT return and settle any remaining tax liability before the certificate is issued.
When do I submit my final VAT return?
The final VAT return for VAT Deregistration in the UAE must be filed within 28 days from the deregistration effective date. Settlement of any tax amount must also be completed within the same time frame to avoid penalties.
Can the Federal Tax Authority reject my deregistration application?
Yes, VAT Deregistration in the UAE can be rejected if information is missing, returns are pending or documents are incomplete. You must meet the conditions fully. A rejected application can be reapplied once corrections are made.
Do I still need to file VAT returns after applying?
Yes you must continue filing VAT returns until VAT Deregistration in the UAE is fully approved. If you skip filings you can face penalties and delays in the deregistration process.
Is there any fee for VAT Deregistration in the UAE?
There is no application fee for VAT Deregistration in the UAE. The process is free through EmaraTax. However businesses may have costs for preparing financial statements or cancelling trade licenses depending on individual cases.