VAT Deregistration Services in UAE
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Easy and Accurate VAT Deregistration with Elevate
If your business is closing down, being sold, or undergoing restructuring, you may be required to deregister from VAT through the Federal Tax Authority (FTA).
At Elevate Accounting & Auditing, we help businesses navigate the VAT deregistration process in UAE by taking care of everything from eligibility checks to final filings. We make sure it’s done right – on time, without errors, and in line with the FTA’s compliance standards.
Who Needs to Deregister for VAT in the UAE?
VAT deregistration becomes necessary when your business no longer qualifies for VAT registration under UAE tax law. The following situations require deregistration:
Business Closed:
Your company has permanently stopped taxable activities and will no longer generate VAT-applicable income.
Turnover Below Threshold:
If your business turnover in the past 12 months drops below AED 187,500, you may apply for voluntary VAT deregistration.
Business Sold or Transferred:
When the full legal and financial ownership is transferred to another party, VAT registration is no longer valid under the original entity.
License Cancelled:
If your trade license has been revoked or cancelled, you must inform the FTA and apply for deregistration within the required timeline.
Each of these cases is monitored by the FTA, and late action can result in fines or further compliance review.
Deadlines and Penalties
According to FTA rules, you must apply for VAT deregistration within 20 business days from the date your business becomes ineligible for VAT.
Common Trigger Dates:
- Trade license cancellation
- Official closure of business activities
- Reduction in taxable turnover
- Transfer of ownership
FTA Penalties for Delayed Deregistration:
- AED 1,000 fine for not applying on time.
- Additional penalties if VAT returns are not filed or if unpaid tax remains.
The 20-day clock starts from the event date (and not when you realize you need to apply). Early action avoids compounding penalties.
Documents Required for VAT Deregistration
To support your deregistration application, the FTA requires documented proof that your business qualifies to cancel its VAT registration. The following documents are typically needed:
- Trade License Cancellation Certificate or evidence of business closure
- Final VAT Return, covering all taxable activity until closure
- Liquidation Letter, if the company is going through formal liquidation
- Board Resolution or POA, authorizing a person to submit the application
- Clearance Letter from Licensing Authority, confirming regulatory closure
- Audit Report or Final Accounts, if specifically requested by the FTA
Note: All files must be submitted through the EmaraTax portal. Incomplete or incorrect submissions may lead to delays or rejection.
What Elevate Offers
We offer a full range of VAT deregistration services in UAE, designed to remove the complexity and reduce risk. Our services include:
- Verifying your eligibility for mandatory or voluntary VAT deregistration
- Submitting the deregistration request through the EmaraTax portal
- Preparing and submitting your final VAT return after deregistration
- Organizing and uploading all required documents as per FTA format
- Answering any FTA follow-up questions or compliance notices
- Assisting with resolving penalties, delays, or rejected applications
With our expert team, you save time, avoid mistakes, and stay fully compliant with the FTA at every step.
Frequently Asked Questions (FAQs) –
What happens if I do not apply for VAT deregistration on time?
You will be fined AED 1,000 and may continue to receive return filing notices. You are still responsible for VAT compliance until the FTA cancels your registration.
If I sell my business, who handles the VAT deregistration?
The seller is responsible for applying for VAT deregistration. The new owner must register separately if their turnover meets the threshold.
Can I apply for VAT deregistration even if I’m still operating?
Yes. If your taxable turnover has dropped below AED 187,500, you may apply for voluntary deregistration, even if the business continues operating.
Do I need to file a final VAT return?
Yes. You must submit a final VAT return covering the period until your deregistration request, along with all due payments.
Can I register for VAT again in the future?
Yes. If your business turnover exceeds AED 375,000 again, you will be required to re-register for VAT with the FTA.
How long does the FTA take to process a deregistration?
It usually takes 20 to 30 business days after your final return and documents have been submitted correctly.
What happens if I forget to file my final VAT return?
The FTA may delay or reject your deregistration. Additional penalties may also apply until you fulfill all pending VAT obligations.
Do I need to settle my VAT dues before applying?
Yes. Your deregistration will not be approved unless all VAT dues, penalties, and returns are cleared.
Can Elevate apply on my behalf?
Yes. As registered tax agents, we can manage your full VAT deregistration, including final return filing and FTA communication.
Will I get confirmation once deregistration is approved?
Yes. You will receive official confirmation from the FTA, and your TRN will be marked as cancelled.
What if the FTA rejects my deregistration request?
You can fix the issue and reapply. We help you review the rejection and respond with the correct information.
Do I have to file VAT returns while waiting for deregistration?
Yes. You are still legally required to file VAT returns until the deregistration is fully approved.
Get VAT Deregistration Assistance in the UAE with Elevate
The process may look simple, but one small error can delay everything, or cost you a fine.
Let Elevate Accounting & Auditing, your trusted VAT deregistration consultants in UAE, take care of everything.
Get in touch today & we’ll make sure it’s done right.