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Cancel Your VAT Registration with Ease
VAT Deregistration, also known as VAT cancellation, is the process of removing a business from the UAE Federal Tax Authority’s (FTA) VAT register. Deregistration can be done either voluntarily or mandatorily, depending on the company’s circumstances.
Businesses in the UAE may apply for VAT deregistration if:
- Their taxable turnover after registration does not exceed AED 187,500 in the first 12 months.
- They have ceased producing taxable supplies.
- They no longer meet the criteria for mandatory VAT registration.
At TAXORYX, we simplify the deregistration process, ensuring compliance with UAE tax laws while helping you avoid unnecessary penalties.
VAT Deregistration in UAE – The Process
VAT deregistration is an online procedure carried out through the FTA portal. Companies that stop operations must first obtain a company liquidation letter from the authorities before applying.
Once the deregistration application is submitted, the FTA will review it. If all legal requirements are met, the VAT registration number (TRN) will be cancelled. Otherwise, the application may be rejected.
The UAE’s tax system relies heavily on voluntary compliance, meaning businesses are responsible for correctly filing, paying, and deregistering as per law.
Types of VAT Deregistration
- It no longer supplies taxable goods or services.
- Its annual turnover is below AED 187,500.
- Its projected taxable supplies/expenses for the next 30 days will not exceed the voluntary threshold.
- The company has closed permanently.
- A company must deregister if
- Its taxable turnover falls below AED 375,000.
- It no longer makes taxable supplies
- A VAT group may be deregistered if
- The businesses no longer qualify as a group.
- Financial/operational links between group members no longer exist.
- Deregistration is required to prevent tax evasion.
When VAT Deregistration May Be Rejected
The FTA may decline deregistration if:
- The application is not submitted within 20 business days.
- Outstanding taxes or penalties have not been paid.
- Required VAT returns are not filed.
📌 Penalty for late deregistration: AED 10,000 (Cabinet Resolution No. 40 of 2017).
How to Apply for VAT Deregistration
- Log in to the FTA Portal.
- Complete the VAT Deregistration Form with valid reasons.
- Submit electronically and receive SMS confirmation.
- Status will show “Pre-Approved” until all dues are cleared.
- Once approved, the TRN will be cancelled.
⚠️ If you plan to resume business or attract new investors, it may be better to retain your TRN and file zero VAT returns instead of cancelling.
How TAXORYX Helps
At TAXORYX, we provide expert guidance to make VAT deregistration simple and hassle-free. Our consultants review your business activities, assess eligibility, and manage the deregistration process in compliance with UAE VAT laws.
Our VAT Services include:
- VAT Registration & Deregistration.
- VAT Compliance & Control.
- VAT Filing & Payment.
- VAT Training for Staff.
- VAT Advisory on Cash Flow Impact.
We also provide CFO Services, Auditing, Accounting & Bookkeeping, Accounting Software Solutions, and Due Diligence Services.
✅ One-hour Free Consultation – Discuss your VAT deregistration requirements with our experts.
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Accuracy & Timeliness
Minimize human error and ensure that every tax obligation is met accurately and on time
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Scalable Solutions
Providing tailored compliance and strategic support at every stage.
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Compliance
Updated with both local and international financial regulations to ensure your business remains fully compliant
FAQs – VAT Deregistration in UAE
Can I deregister within 6 months of registration?
No. Voluntary deregistration is only possible after 12 months.
My annual turnover is below AED 375,000. Can I deregister?
Yes. If turnover is below the mandatory threshold, you may apply.
I haven’t filed VAT returns for 12 months. Can I deregister?
Yes, but only after clearing all dues and penalties.
Can I deregister one company from a VAT group?
Yes. The group’s representative must notify the FTA within 20 business days.
What if I delay compulsory deregistration?
A penalty of AED 10,000 will apply.
How do I cancel VAT registration?
Log in to the FTA portal, click De-Register, provide the reason/date, and submit. The FTA will review and confirm.
