Registering for VAT is well known. Cancelling it is less so, and getting it wrong can leave you with returns and penalties you did not expect. Here is a simple overview.
When must you deregister?
You must apply to deregister if you stop making taxable supplies, for example because the business has closed or you no longer sell anything that is subject to VAT.
When can you deregister?
You may apply if your taxable supplies in the last 12 months were below the voluntary registration threshold of AED 187,500, and you expect them to stay below it.
How long do you have?
The usual time limit is 20 business days from the date the requirement arises. Applying late can lead to a penalty of [AED amount, to confirm].
How does the process work?
- Check the reason and the correct date for de-registration.
- Prepare your application and supporting documents.
- Submit it through the Federal Tax Authority’s EmaraTax portal.
- Answer any questions the authority asks.
- File your final VAT return and settle any balance.
- Keep the confirmation of cancellation with your records.
What about stock and assets?
If you still hold goods or assets after de-registration, VAT may be due on them in your final return. This is easy to miss, so check it before you file.
Keep filing until it is approved
Until the authority approves the cancellation, you usually have to keep filing returns. Do not stop filing just because you have applied.
Need help?
We prepare the application, the final return and the follow-up. See VAT De-registration or VAT and Corporate Tax Return Filing.
Figures on this page come from our tax settings and are confirmed before publication. Always check the current rules with the Federal Tax Authority.
Topics: VAT deregistration UAE · cancel VAT registration UAE · VAT de-registration Dubai · FTA deregistration