Guide to VAT Deregistration

When running a business in the UAE, you may at some point need to cancel your VAT registration. This is known as VAT deregistration. The Federal Tax Authority (FTA) has set clear rules and processes for businesses to follow, making sure everything is smooth, transparent, and supported by digital services through the EmaraTax platform.

In this guide, we will explain what VAT deregistration is, when it’s required, how to apply, what documents are needed, timeframes, and what happens after submission. By the end, you will have a clear step-by-step understanding of how the FTA supports businesses with VAT deregistration.

What is VAT Deregistration?

VAT deregistration is the process of cancelling a business’s VAT registration with the Federal Tax Authority (FTA). This is necessary when a company:

• Stops making taxable supplies in the UAE.
• Sells or closes its business.
• Falls below the VAT registration thresholds.
• Or meets other conditions defined by the FTA.

Once deregistered, the business will no longer collect VAT or file VAT returns. However, all outstanding tax obligations must be settled before deregistration is complete.

How the FTA Supports Businesses

The FTA makes VAT deregistration easy to access and understand through different channels and resources. Here’s how they support businesses:

1. Service Accessibility

• All VAT deregistration services are available online through EmaraTax, which is connected to UAE Pass.
• The platform operates 24/7 and is free of charge.
• You need an account with the FTA (created during VAT registration) to use this service.

2. Guides and Learning Resources

• The FTA publishes a detailed “VAT Deregistration Guide” and other reference documents.
• There are FAQs, e-learning modules, and guided tours to help businesses.
• These resources explain the requirements, documents, and steps in simple terms.

3. Customer Support

Businesses can also seek assistance from FTA-approved tax agents such as Excellent Accountants, who are qualified to guide companies through the VAT deregistration process. In addition, support is available directly from the FTA through its customer service hotline (800 82923) and email (info@tax.gov.ae). The EmaraTax website is designed to be user-friendly, offering accessibility features like text-to-speech, night mode, and contrast themes to make navigation easier for all users.

When Do You Need to Deregister?

VAT deregistration can be mandatory or voluntary, depending on your situation.

• Mandatory deregistration:
  Must be done within 20 business days if your business stops making taxable supplies or if your trade license is cancelled.
• Voluntary deregistration:
  If your taxable turnover falls below AED 375,000 (mandatory registration threshold) but is still above AED 187,500 (voluntary threshold), you may apply to deregister.

Failing to apply within the required time may result in penalties.

Documents Required for Deregistration

The FTA requires supporting documents depending on why you are deregistering. Some examples include:

• Business closed: Trade license cancellation, liquidation letter, latest financial statement.
• Business sold: Sales contract, amended setup documents.
• Natural person (individual): Proof of cessation, turnover template, declaration letter.
• Supplies below threshold: Financial turnover template, latest accounts, official declaration.
• Other cases (duplicate TRN, branch closures, etc.): TRN certificates, official letters.

👉 Documents can be uploaded in PDF, Excel, Word, JPG, PNG, JPEG formats, with a maximum size of 5 MB per file.

Step-by-Step Process for VAT Deregistration

The entire process is done through the EmaraTax portal. Here’s how it works:

1. Login to EmaraTax

• Sign in using UAE Pass or your EmaraTax credentials.
• Select the relevant Taxable Person (your business entity) from the dashboard.

2. Start Deregistration

• On the VAT tile, click on “Actions” → “Deregister”.
• Review or edit bank details if needed.
• If your business is linked to the Tourist Refund System, you must deregister from it first.

3. Guidelines and Instructions

• A page with instructions appears—read carefully and confirm before continuing.

4. De-Registration Information

• Select the reason for deregistration.
• Enter the effective date (auto-filled but can be changed with justification).
• Provide details of taxable supplies and expenses. You can:
  • Upload an Excel template provided by the FTA, or
  • Enter figures directly in the system.

5. Authorized Signatory

• Review the details of the person authorized to sign the application.

6. Review and Declaration

• Check all information entered.
• Tick the declaration box confirming accuracy.

7. Submit Application

• Click Submit and confirm by selecting Yes.
• A Reference Number will be generated for your application.

Deregistration Timeframes

The FTA has clear timelines for deregistration:

• Application submission: Around 45 minutes to complete.
• FTA processing (complete application): Up to 20 business days.
• FTA processing (incomplete application): If more documents are needed, another 20 business days after submission of additional details.
• Mandatory deadline: You must apply within 20 business days from when deregistration became necessary.
• Final tax return deadline: Must be submitted and tax settled within 28 days of the effective deregistration date.

Post-Submission Actions

Submitting the application is not the final step. Several important actions follow:

1. FTA Review
   • The FTA may pre-approve, reject, or request more documents.
   • Notifications are sent via email and SMS.
2. Final Tax Return
   • A final return must be filed, covering the last tax period.
   • All outstanding tax and administrative penalties must be paid.
3. Refunds or Payments
   • If you owe money, you must pay before deregistration is approved.
   • If you have a credit balance, you can apply for a refund through EmaraTax.
4. Deregistration Certificate
   • Once approved, you can download your Deregistration Certificate from your EmaraTax dashboard.
   • This is official proof that your VAT registration has been cancelled.

Why Proper Deregistration Matters

Failing to deregister on time or not filing final returns can lead to penalties. It also creates legal and financial complications if your business has already stopped operations. Proper deregistration ensures:

• You are free from future VAT obligations.
• All liabilities are cleared with the FTA.
• You have documented proof of closure through the Deregistration Certificate.

Final Thoughts

VAT deregistration in the UAE may sound complex, but the FTA has built a structured, digital-friendly process through EmaraTax. Businesses get step-by-step support with guides, e-learning resources, customer service, and clear timelines.

The key is to submit the application within deadlines, provide the right documents, settle all dues, and file the final return. Once done, you can download your deregistration certificate as proof that your VAT responsibilities have officially ended.

If your business is closing, selling, or falling below the VAT threshold, it’s important to act quickly and start the deregistration process to avoid penalties and ensure compliance.👉 Need expert help with VAT deregistration?
Contact Excellent Accountants – FTA Approved Tax Agents for professional guidance.