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VAT Deregistration

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VAT Deregistration

In the UAE, VAT deregistration enables a taxable individual or business to terminate their VAT registration and suspend their Tax Registration Number (TRN). The process for FTA VAT deregistration is conducted online.

It’s important to note that only businesses and individuals registered under the Federal Tax Authority (FTA) are eligible for VAT deregistration. It’s worth mentioning that a penalty of AED 10,000 will be imposed for late VAT deregistration.

VAT Deregistration can only be applied for by businesses or individuals registered under VAT under the following circumstances:

  • 1. If the business or individual ceases to make taxable supplies and does not anticipate making any taxable supplies in the next 12-month period, they must apply for VAT Deregistration.
  • 2. If the business or individual is still making taxable supplies, but the total value of these supplies in the preceding 12 calendar months falls below the Voluntary Registration Threshold (AED 187,500), they must apply for VAT Deregistration.
  • 3. If the business or individual is still making taxable supplies, but the total value of these supplies in the previous 12 months was below the Mandatory Registration Threshold (AED 375,000), and 12 months have passed since the date of voluntary registration, they may apply for VAT Deregistration.

    • It's important to note that a person who has voluntarily registered under VAT cannot apply for deregistration within 12 months following the date of registration. Failure to comply with the deadline for VAT Deregistration will result in a fine of AED 10,000.

In order to comply with VAT deregistration requirements, registrants are required to submit their application within 20 business days from the occurrence of the relevant events mentioned earlier. The process of applying for VAT deregistration is convenient as registrants can access their FTA portals for submission.

It is important to emphasize that failing to submit the deregistration form within the specified 20-business-day timeframe will result in a penalty of AED 10,000 for late deregistration.

In cases where companies are closing down, it is necessary to obtain a company liquidation letter from the appropriate government authorities as a prerequisite for applying for VAT deregistration.

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