VAT Deregistration In UAE—Professional Support to Cancel VAT Registration Compliantly
VAT Deregistration In UAE
When your business no longer meets VAT registration requirements in the UAE, officially canceling your Tax Registration Number (TRN) with the Federal Tax Authority becomes a legal obligation. My Taxman offers expert VAT Deregistration In UAE services that ensure compliant, timely closure of your VAT obligations. Whether due to business closure, reduced turnover below mandatory thresholds, or cessation of taxable activities, our experienced Tax Consultants In Dubai manage the entire deregistration process through the EmaraTax portal. We handle documentation preparation, final VAT return filing, liability settlement, and FTA coordination to ensure smooth VAT Compliance throughout your exit from the VAT system. Professional guidance prevents penalties and ensures all regulatory requirements are met properly.
Understanding VAT Deregistration
VAT Deregistration is the formal process of canceling your business’s VAT registration with the Federal Tax Authority. Once deregistered, your Tax Registration Number becomes inactive, and your business is no longer permitted to:
- Issue VAT invoices to customers
- Charge VAT on sales and supplies
- Claim input VAT recovery on business purchases
- File VAT returns with the FTA
- Maintain VAT-specific record-keeping requirements
Deregistration officially concludes your VAT obligations and removes your business from the UAE’s VAT system.
Reasons For Deregistration Of VAT
Understanding the reasons for deregistration of VAT helps determine if your business qualifies for this process:
Mandatory Deregistration Circumstances
Your business must apply for VAT Deregistration In UAE within 20 business days if:
- Business Closure or Liquidation: Your company has ceased all operations permanently
- Cessation of Taxable Activities: You no longer make taxable supplies but continue other business activities
- Turnover Below Voluntary Threshold: Your taxable supplies and imports over the past 12 months have fallen below AED 187,500
- Business Restructuring: Merger or acquisition results in cessation of the original entity
- License Cancellation: Your trade license has been canceled by relevant authorities
Failing to apply within the 20-day timeframe can result in penalties of AED 1,000 per month of delay, up to a maximum of AED 10,000.
Voluntary Deregistration Option
Your business may choose voluntary VAT Deregistration if:
- Annual taxable turnover falls between AED 187,500 and AED 375,000
- You’re outside the mandatory threshold but above the voluntary registration level
- Business operations are being simplified or restructured
- Administrative burden reduction is desired
Important Note: Businesses that voluntarily registered for VAT cannot apply for deregistration in the same year they registered.
How To Cancel VAT Registration In UAE: Step-by-Step Process
Understanding how to cancel VAT registration in UAE requires following the proper FTA procedures systematically. Our Tax Consultants In Dubai manage every step professionally.
Step 1: Verify Deregistration Eligibility
Before initiating the process, confirm your business qualifies for deregistration:
- Review your taxable supplies over the past 12 months
- Confirm cessation of taxable activities if applicable
- Ensure you meet the 20-business-day application window
- Check that all previous VAT returns have been filed
- Verify all VAT liabilities and penalties are cleared
Step 2: Prepare Required Documentation
Gather all necessary documents before starting the online application:
- Trade License Cancellation Certificate: If your business has closed
- Financial Statements: Showing turnover below applicable thresholds
- Bank Details: Updated account information for potential refunds
- Final VAT Return: Covering all transactions up to deregistration date
- Proof of Settled Liabilities: Confirming all VAT payments and penalties are cleared
- Employee Deregistration Proof: If applicable to business closure
- TRS Deregistration: If registered under Tourist Refund System
Our VAT Deregistration In UAE services ensure complete documentation preventing application delays.
Step 3: Access the EmaraTax Portal
Log in to the Federal Tax Authority’s online platform:
- Visit the EmaraTax portal using your registered credentials
- Navigate to your company’s VAT dashboard
- Locate the VAT tile showing your current registration status
- Click “Actions” on the VAT tile
- Select “Deregister” to open the deregistration application form
Step 4: Complete the Deregistration Application
Fill out the online form with accurate information:
- Review Business Information: Click “Edit/Review” to update bank account details, contact information, or company address if needed
- Select Deregistration Reason: Choose from options like business closure, suspension of taxable activities, or turnover below threshold
- Specify Eligible Date: Enter the date from which your business became eligible for deregistration (EmaraTax often auto-calculates this)
- Provide Financial Data: Complete the Excel template with taxable supplies and expenses in AED
- Upload Supporting Documents: Attach all required documentation in PDF or Excel format
Step 5: Enter Taxable Supplies and Expenses
Provide comprehensive financial information:
- Download the Excel sheet provided in the system
- Record all taxable supplies for the relevant period
- List all business expenses and purchases
- Ensure all amounts are in UAE Dirhams (AED)
- Double-check figures for accuracy before proceeding
Step 6: Verify Authorized Signatory
Confirm the person submitting the application has proper authority:
- Review the authorized signatory details displayed in the system
- Verify name, designation, and signature information
- Only authorized individuals can finalize the deregistration
- Make corrections if necessary before proceeding
Step 7: Review and Submit Application
Conduct a thorough final review before submission:
- Check all entered information for accuracy
- Verify uploaded documents are complete and legible
- Confirm financial figures match your records
- Review the selected deregistration reason and effective date
- Click “Submit” to send your application to the FTA
- Save the submission acknowledgment for your records
The Federal Tax Authority typically processes VAT Deregistration applications within 20 business days from the submission date.
Filing the Final VAT Return
A critical requirement of VAT Compliance during deregistration is submitting a final VAT return:
Final Return Requirements
Your final VAT return must:
- Cover all taxable transactions from your last return up to the deregistration date
- Include all output VAT charged on sales during this period
- Claim all eligible input VAT on purchases made
- Account for any adjustments or corrections
- Be filed through the EmaraTax portal
- Include payment of any outstanding VAT liabilities
Settlement of All Liabilities
Before the FTA approves your deregistration, you must clear:
- All pending VAT payments from previous periods
- Late filing or payment penalties
- Interest charges on unpaid taxes
- Any administrative fines or sanctions
Our Tax Consultants In Dubai ensure your final return is accurate and all obligations are settled properly.
Mistakes to Avoid
Many businesses encounter problems during VAT Deregistration that professional services prevent:
- Missing the 20-Day Deadline: Resulting in monthly penalties up to AED 10,000
- Incomplete Documentation: Causing application rejection and delays
- Unsettled Liabilities: Preventing FTA approval of deregistration
- Incorrect Final Return: Leading to additional penalties or audit triggers
- Failing to File Previous Returns: Blocking deregistration until compliance is current
- Premature Application: Applying before actually meeting eligibility criteria
- Wrong Effective Date: Creating liability confusion and potential penalties
Why Choose My Taxman for VAT Deregistration?
Our comprehensive VAT Deregistration services deliver exceptional value during this critical transition:
Expert Knowledge
- Certified tax professionals with extensive FTA experience
- Deep understanding of deregistration requirements and procedures
- Updated awareness of 2025 regulatory changes
- Proven track record of successful deregistrations
Comprehensive Support
- End-to-end management of the entire process
- Final VAT return preparation and filing
- Liability settlement coordination
- FTA correspondence handling
- Post-deregistration compliance guidance
Penalty Prevention
- Ensuring timely submission within 20-day window
- Preventing monthly delay penalties
- Avoiding application rejection due to errors
- Protecting against future audit issues
Get Started with Professional VAT Deregistration Today
Don’t risk penalties or compliance complications during your VAT Deregistration In UAE. Partner with My Taxman experienced Tax Consultants In Dubai for reliable, accurate, and compliant deregistration services.
Contact us today to discuss your deregistration requirements and discover how professional support ensures smooth closure of your VAT obligations while maintaining full VAT Compliance with Federal Tax Authority regulations.
Let us handle the complexities of how to cancel VAT registration in UAE while you focus on your business transition or closure activities with complete confidence
Frequently Asked Questions
Q1: What is VAT deregistration in UAE?
VAT deregistration is the official process of canceling your business’s VAT registration with the Federal Tax Authority. Once approved, your Tax Registration Number becomes inactive, and you can no longer charge VAT, claim input tax, or file VAT returns
Q2: When must I apply for VAT deregistration?
You must apply within 20 business days if your business ceases taxable activities, closes permanently, or your taxable supplies fall below AED 187,500 over the past 12 months. Voluntary deregistration is possible if turnover falls between AED 187,500 and AED 375,000.
Q3: How to cancel VAT registration in UAE?
To cancel VAT registration, log in to the EmaraTax portal, navigate to VAT services, select “Deregister,” complete the online application form with required information, upload supporting documents, and submit. The FTA typically takes 20 business days to complete the deregistration process.
Q4: What are the penalties for late VAT deregistration?
The FTA imposes penalties of AED 1,000 per month for delayed deregistration applications, with a maximum penalty of AED 10,000. Applications must be submitted within 20 business days of becoming eligible for deregistration.
Q5: What documents are required for VAT deregistration?
Required documents include trade license cancellation certificate (if applicable), financial statements showing turnover below thresholds, updated bank details, final VAT return, proof of settled VAT liabilities and penalties, and any relevant closure documentation.
Q6: Can I deregister for VAT in the same year I registered?
No, businesses that voluntarily registered for VAT cannot apply for deregistration in the same year they registered. You must wait until the following year before applying for voluntary deregistration.
Q7: What happens to my final VAT return after deregistration?
You must file a final VAT return covering all taxable transactions from your last return up to the deregistration date. This return must include all output and input VAT, and any outstanding liabilities must be paid before the FTA approves your deregistration.
Q8: How long does VAT deregistration take in UAE?
The Federal Tax Authority typically processes VAT deregistration applications within 20 business days from the submission date. However, the timeline may extend if the FTA requires additional information or documentation.
Contact Us
My Taxman will help you navigate every aspect of Value added tax compliance with expert guidance. We offer end-to-end solutions from Value added tax registration UAE to return filing and advisory to simplify your tax journey.
