VAT registration is not permanent. When a business stops making taxable supplies, or its supplies fall below a certain level, it may have to cancel its VAT registration with the Federal Tax Authority (FTA). This is called VAT deregistration. Missing the deadline can lead to penalties, and the registration stays open until the process is complete.
This guide explains when deregistration is mandatory or voluntary, the deadline, the documents and the steps on EmaraTax.
When Is VAT Deregistration Mandatory?
According to the FTA, a business must apply to deregister when:
- It no longer makes taxable supplies. This includes when the trade licence is cancelled, the business is sold or transferred, or it stops operating.
- Its supplies fall below the voluntary registration threshold of AED 187,500.
When Can You Deregister Voluntarily?
A business may choose to apply for deregistration if its revenue is above AED 187,500 but below the mandatory registration threshold of AED 375,000. Voluntary deregistration is optional. Some businesses stay registered so they can keep recovering input tax, so review the impact before applying.
Deadline to Apply: 30 Business Days
A mandatory deregistration application must be submitted within 30 business days from the date the obligation to deregister arises. For example, if your licence is cancelled, the 30 business days start from that event.
Late applications can attract administrative penalties under the UAE tax penalty rules, which were amended with effect from 14 April 2026. Confirm the current amount with the FTA.
Documents Required
The documents depend on why you are deregistering. Common examples from the FTA include:
- Trade licence cancellation certificate, liquidation letter or board resolution, if the business has closed.
- Sale contract and amended trade licence, if the business was sold or transferred.
- A financial turnover template showing taxable supplies and expenses, if deregistering because of low turnover.
- A declaration for sole establishments, where relevant.
Files can be uploaded as PDF, Excel, Word or image files, up to 5 MB each.
How to Deregister for VAT on EmaraTax
- Log in to EmaraTax and open your dashboard.
- Open the taxable person account by clicking "View".
- Go to VAT, click "Actions" and choose "De-Register".
- Complete the form, state the reason and the effective date, and upload your documents.
- Submit. The FTA lists about 45 minutes to complete the application. There is no fee.
The FTA estimates 30 business days to process a complete application. If it asks for more documents, you may need to respond, which can extend the timeline.
Final VAT Return and Clearing Your Account
Deregistration is not finished when you submit the application. You must also:
- Submit your final VAT return and pay any VAT due no later than 28 days from the effective date of deregistration.
- Settle all outstanding tax and any administrative penalties.
The FTA issues the deregistration certificate only after the final return is approved and all amounts are paid. Keep your VAT records after deregistration, as the FTA may still review past periods.
See our guides on filing VAT returns and VAT compliance.
Frequently Asked Questions
What is the deadline for VAT deregistration in the UAE?
Within 30 business days from the date the obligation to deregister arises.
Is there a fee for VAT deregistration?
No. The FTA does not charge a fee to deregister.
How long does VAT deregistration take?
The FTA estimates 30 business days from receipt of a complete application, plus the time needed to file the final return and clear any balances.
Do I need to file a final VAT return?
Yes. The final return and any VAT due must be submitted no later than 28 days from the effective date of deregistration.
Note: This article provides general information only and is not tax advice. Requirements and penalties can change. Confirm the current rules with the Federal Tax Authority or a qualified tax professional.