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VAT Deregistration in the UAE

Smooth, Compliant VAT Deregistration—Handled by Experts

Are you no longer meeting the VAT registration threshold or ceasing operations in the UAE? If so, VAT deregistration is mandatory to avoid penalties and remain compliant with Federal Tax Authority (FTA) regulations.

Our expert VAT team simplifies the VAT deregistration process, managing all documentation, FTA communications, and compliance checks—ensuring a smooth and penalty-free transition.

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Types of VAT Deregistration in UAE

VAT Deregistration Is Required

According to FTA legislation, entities must fulfill certain requirements in order to de-register their VAT in the United Arab Emirates. If a registered business in Dubai ceases to sell taxable goods and services, it must apply for VAT deregistration.

 

Voluntary VAT Deregistration

In Dubai, businesses have two options for voluntary VAT deregistration services:

  • If they make more than AED 187,500 in a year but less than AED 375,000.

 

Group VAT Deregistration

Under the following circumstances, the FTA permits VAT deregistration in the UAE for tax groups:

  • The tax group requirements are no longer met by the registered business

What is VAT Deregistration in UAE?

The formal termination of a business’s VAT registration with the Federal Tax Authority (FTA) is known as VAT deregistration in the United Arab Emirates. When a company no longer satisfies the requirements for VAT registration, this procedure is required. When requesting for deregistration, businesses must adhere to the VAT Law’s standards in order to avoid penalties and legal repercussions.

Documents Required for VAT Deregistration in UAE

A duplicate of the canceled trade license

Board decision or liquidation letter attesting to closure

Current financial statements, whether audited or not (P&L, balance sheet, trial balance)

Letter from the Ministry of Labor about the number of employees

Revised licensing documents or sales agreements

Details of the importer and supplier

Official announcement of a company’s closure (if necessary)

Any evidence of unpaid taxes

Impact of VAT Deregistration in UAE

No VAT Fees

Businesses are unable to charge VAT on sales after deregistration, which can result in reduced prices for clients who are not VAT-registered. However, it is no longer possible to claim VAT on business purchases.

Decreased Administrative Stress

By removing the requirement to file VAT returns, deregistering from VAT lowers compliance expenses and tax administration time.

Modifications to Financial Planning

Since VAT deregistration has an impact on cash flow and pricing competitiveness, businesses should review their financial plan.

How to Cancel VAT Registration in UAE?

Log in to the EmaraTax Portal

Enter your login information to access the EmaraTax portal.
To retrieve your account if you are a new user, register or select "Forgot Password."
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Start the Application for VAT Deregistration

Go to the VAT area and choose "Deregister."
Before continuing, change your bank information if necessary.
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Give a rationale and any supporting documentation.

Choose the deregistration reason.
Enter the supporting information and the effective date.
Send in your taxable income, expenses, and financial turnover information.
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Send in and check the application.

Before applying, confirm all the details.
The FTA will evaluate your application, look over the status of your tax return, and look for any unpaid debts.
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Obtain confirmation and approval for deregistration.

The VAT number will be canceled after approval.
FTA will let the applicant know if more paperwork is needed.
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The Investor Audit

VAT Deregistration in the UAE

VAT deregistration in the UAE is a vital process for businesses that no longer meet the registration threshold or are ceasing operations. Proper deregistration ensures compliance with Federal Tax Authority (FTA) requirements, avoiding unnecessary penalties and complications. By outsourcing your VAT deregistration, you benefit from expert handling of final returns, documentation, and FTA approvals—making the process seamless and stress-free. Whether you’re restructuring, downsizing, or exiting the market, professional support ensures your VAT closure is timely, accurate, and fully compliant with UAE regulations.

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