How to Deregister for VAT in UAE

What Is VAT Deregistration?

VAT deregistration is the process of cancelling your Tax Registration Number (TRN) with the Federal Tax Authority (FTA). Once deregistered, you are no longer required to:

• Charge VAT on sales
• File VAT returns
• Maintain VAT records (beyond the retention period)

When Should You Deregister for VAT in UAE?

You must apply for VAT deregistration if:

Mandatory Deregistration

• Your taxable turnover drops below AED 187,500 for the last 12 months and is expected to stay below this threshold
• You stop making taxable supplies (business closure or change in activities)
• You merge with another VAT-registered business and no longer operate independently

Voluntary Deregistration

• If your turnover falls below AED 375,000 but above AED 187,500 and you no longer wish to remain VAT registered

Deadline: You must apply within 20 business days of becoming eligible, or risk penalties.

Penalties for Late Deregistration

• AED 1,000 for late application (first offense)
• AED 2,000 for repeat offenses
• Ongoing requirement to file VAT returns until deregistration is approved

How to Deregister for VAT in UAE (FTA Portal – 2026)

Step 1: Log in to FTA e-Services

• Visit https://eservices.tax.gov.ae
• Enter your login details

Step 2: Select “VAT Deregistration”

• Go to VAT → VAT Deregistration

Step 3: Fill Out the Application

• Reason for deregistration
• Effective date
• Supporting documents:
  • Trade license cancellation (if applicable)
  • Proof of reduced turnover
  • Merged company details (if applicable)

Step 4: Settle Outstanding VAT Liabilities

• Pay any due VAT before submission
• Submit all pending VAT returns

Step 5: Submit & Await Approval

• FTA reviews your application (typically within 20 business days)
• Once approved, TRN will be cancelled and status updated

Tips for Smooth VAT Deregistration

• File final VAT return correctly
• Keep VAT records for minimum 5 years after deregistration
• Ensure zero outstanding liabilities before applying
• Provide clear evidence for eligibility

Most Searched VAT Deregistration FAQs (2026)

Q: Can I re-register for VAT after deregistration?
A: Yes, you can reapply anytime if you meet the threshold again.

Q: Can I claim VAT refund before deregistration?
A: Yes, file the refund before final VAT return submission.

Q: How long does VAT deregistration take?
A: Typically 20 business days, but delays can happen if documents are incomplete.

Q: Do I need to submit VAT returns after deregistration?
A: Only until the effective deregistration date.

Conclusion

VAT deregistration is as important as registration when it comes to compliance. If you no longer meet the VAT registration criteria, applying on time saves you from unnecessary penalties and filing obligations.

Need Help With VAT Deregistration?

At Think Biz Management Consultancies, we help you:

• Assess your eligibility for deregistration
• Prepare and submit your application on the FTA portal
• File your final VAT return
• Settle outstanding VAT liabilities
• Keep your business fully compliant with UAE VAT laws

 

Contact us today for a free consultation.
We’ll handle your VAT deregistration quickly and professionally.