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VAT Deregistration

VAT Deregistration Service in the UAE

VAT Deregistration in the UAE is a mandatory process under the Federal Decree Law No. 8 when specific conditions are met. Businesses and individuals registered for VAT must apply for deregistration with the Federal Tax Authority (FTA) if they no longer meet the registration requirements.

When to Apply for VAT Deregistration

A VAT registrant must apply for deregistration within 20 business days if:

  • The business ceases making taxable supplies.
  • The value of taxable supplies in the last 12 consecutive months falls below the voluntary VAT registration threshold (AED 187,500) and is not expected to exceed it in the next 30 days.

Failure to comply may result in penalties under UAE VAT Law.

VAT Deregistration Process in UAE

  1. FTA Portal Access – Log in to the Federal Tax Authority portal and apply for VAT deregistration.
  2. Application Review – The FTA reviews the application based on turnover, business activity, or discontinuation.
  3. Pre-Approval Notification – Once accepted, your application status changes to ‘Pre-Approved’ on the FTA dashboard.
  4. Final VAT Return Filing – Businesses must file a final VAT return before deregistration is completed.
  5. Outstanding Payments – Any pending VAT liabilities must be cleared.
  6. FTA Confirmation – Final approval is issued, and the VAT registration is officially canceled.

Penalties for Not Deregistering

Businesses that fail to deregister after becoming ineligible are subject to a fine of AED 10,000 under UAE VAT Law.

Why Professional VAT Deregistration Services Matter

  • Ensure error-free deregistration application.
  • Avoid penalties and delays due to incorrect filings.
  • Get assistance with final VAT return preparation.
  • Stay compliant with FTA tax regulations.

Conclusion

VAT deregistration in the UAE is a critical compliance requirement for businesses that no longer meet registration thresholds or have ceased operations. Timely deregistration helps avoid penalties and ensures a smooth transition. Engaging with experienced VAT consultants in Dubai, Abu Dhabi, and across the UAE can simplify the deregistration process, ensuring compliance with the Federal Tax Authority (FTA).