VAT Deregistration Process in the United Arab Emirates 

05.12.25 11:47 AM - By Fintrack Tax Consultants

Key points at a glance

● VAT deregistration (cancellation of your TRN) is required when you stop making taxable supplies, shut down the business, or your taxable turnover falls below the voluntary registration threshold.

● You must submit a deregistration application on the FTA (EmaraTax) portal — normally within 20 business days of the triggering event.

● Final VAT return and full settlement of outstanding VAT liabilities are required before deregistration is confirmed.

● Deregistration affects your ability to issue VAT invoices and to recover input VAT — plan asset disposals and input VAT claims carefully.

● Keep VAT records for the statutory retention period (five years in most cases) even after deregistration.

What deregistration means — a short overview

Deregistration cancels your VAT registration (Tax Registration Number) with the Federal Tax Authority (FTA). 


Once approved, you must stop charging VAT, you cannot submit regular VAT returns as a registrant, and your entitlement to recover input VAT ceases. 


Deregistration is a compliance step — not a shortcut — and it requires correct timing, accurate final returns, and documentation.

Who must apply for VAT deregistration?

You must apply for deregistration in any of these main cases:

● You cease to make taxable supplies (for example, business closure, liquidation, or sale of the business). 

● Your total taxable supplies and imports for the preceding 12 months fall below the voluntary registration threshold (that is, below AED 187,500) and you no longer wish to stay voluntarily registered.

● You wish to cancel registration voluntarily where eligible (for example, restructuring where VAT registration is no longer required). 

When should you apply?

Apply as soon as the deregistration event happens. The FTA requires notification within 20 business days from the date of the event that triggers deregistration (for example, business closure or drop below the voluntary threshold). Timely filing avoids penalties and complications.

Step-by-step deregistration process

Step 1 — Prepare supporting documents

Gather documents showing the reason for deregistration: liquidation or closure paperwork, final turnover schedules, transfer/sale agreements, board resolutions, or other proof of cessation of taxable activities. Have your accounting records updated to the date of deregistration.

Step 2 — Log in to EmaraTax (FTA e-Services)

Access your EmaraTax account using UAE PASS and navigate to the VAT section of your taxable person account. Choose the “De-Register” action. 

Step 3 — Complete and submit the deregistration form

Fill in the requested details, attach supporting documents, and submit. Be precise about dates (e.g., date of cessation) — the FTA uses these when determining deadlines and final reporting. 

Step 4 — File final VAT return and settle liabilities

You must file a final VAT return covering the period up to the deregistration effective date. Pay any outstanding VAT, penalties, or interest before deregistration is approved. The FTA may require adjustments for input VAT previously claimed on assets still held or disposed of after deregistration. 

Step 5 — FTA review and confirmation

The FTA reviews the application and documents. The official processing time can vary; common practical guidance notes a review period (often around 20 business days), but timing depends on case complexity and outstanding issues. The FTA may request clarifications or additional documents. 

Step 6 — Post-deregistration actions

Once deregistered, stop issuing VAT invoices and remove VAT from pricing. Retain VAT records for the statutory retention period (see below). If you restart taxable activities that require VAT registration in the future, you must reapply for registration when the thresholds are met.

Common technical points businesses must not forget

● Final inventory and capital assets: If you claimed input VAT on capital items and you retain them after deregistration, you may need to account for adjustments. The VAT User Guide explains input VAT adjustment rules and disposal treatments. 

● Cross-border and import implications: If you deregister and later import goods, customs and VAT on imports will be affected; plan import and stock movements before deregistration to avoid extra costs. 

● Outstanding VAT audits or disputes: If you are under audit or dispute, the FTA may withhold approval until issues are resolved. Do not expect deregistration to shield you from outstanding liabilities. 

Timeline and processing — typical expectations

● Submit within 20 business days after the event that requires deregistration.

● FTA review commonly takes several weeks, subject to verification and any follow-up requests. Complex cases (outstanding liabilities, incomplete records) may take longer.

Fees, penalties and risks of late deregistration

Late deregistration or failure to notify the FTA can attract administrative penalties. The exact penalty depends on the circumstances and FTA rules at the time. Filing on time and settling liabilities reduces the risk of fines. 

Practical checklist — before you hit submit

● Confirm the event date triggering deregistration (closure date or date your taxable turnover dropped below threshold).

● Reconcile VAT returns up to the deregistration date.

● Prepare the final VAT return and clear outstanding VAT, penalties, and interest.

● Prepare supporting documents (closure, transfer, turnover, board minutes).

● Review input VAT claims on assets and adjust if assets remain after deregistration.

● Ensure records are available and retained for at least the statutory retention period.

Summary table — VAT deregistration at a glance

Topic

Key point

Trigger events

Cessation of taxable supplies, business closure, turnover below voluntary threshold, or voluntary cancellation.

Deadline to apply

Within 20 business days from the triggering event.

Where to apply

FTA EmaraTax portal (use UAE PASS).

Final filing

Final VAT return up to deregistration date; settle all liabilities.

Review time

Varies; commonly within several weeks but depends on complexity.

Records retention

Keep VAT records for statutory period (refer to VAT User Guide).

Frequently asked questions (FAQ)

When exactly should I stop charging VAT?
Stop charging VAT from the effective deregistration date confirmed by the FTA. Until you receive confirmation, continue to comply with VAT obligations and issue VAT invoices as normal.

Do I still need to file VAT returns after deregistration?
After deregistration is confirmed, you are no longer required to file periodic VAT returns as a registrant. However, you must file a final return up to the effective deregistration date and keep records for the statutory retention period.

What happens to input VAT I already claimed on assets?
If you keep assets after deregistration, you may need to make adjustments for previously claimed input VAT under the “adjustment” rules. If you dispose of assets before deregistration, treat the supplies according to normal VAT rules. Consult the VAT User Guide for the specific adjustment mechanics.

Will the FTA issue a deregistration or clearance certificate?
The FTA confirms deregistration via the EmaraTax portal status. For certain cases, you may request official confirmation or clearance documentation through the portal or support channels. Check the EmaraTax service for current procedures.

If I restructure and move activities offshore, should I deregister?
It depends. If taxable supplies cease or fall below thresholds, deregistration may be the correct step. However, restructuring can be complex (transfer of assets, ongoing supplies, cross-border implications), so consult a tax advisor and plan the timing to avoid unintended VAT costs.

How we can help

If you’d like a practical checklist or a review of your VAT position before you apply, our team can review turnover data, identify trigger dates, prepare the final return, and guide you through the EmaraTax submission to reduce risk and avoid penalties. Contact us for a compliance review tailored to businesses operating across the United Arab Emirates.

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Fintrack Tax Consultants

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