VAT Deregistration UAE

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Want to Cancel Your VAT in the UAE? Here’s What Every Business Owner Should Know About VAT Deregistration!

Planning to cancel your VAT registration in the UAE? If your business has shut down, dropped below the taxable limit, or changed structure, then VAT deregistration in UAE is not just a choice—it’s required by law under FTA rules.

At IRHA Accounting & Auditing, we make the VAT deregistration process simple and stress-free. Our team ensures your application fully complies with Federal Tax Authority (FTA) regulations, so you avoid heavy fines or delays.

What is VAT Deregistration in UAE?

VAT deregistration in UAE means officially cancelling your business’s VAT registration with the Federal Tax Authority (FTA). This step is required when your company no longer qualifies for VAT — for example, if your revenue drops below the threshold or your business shuts down. To avoid FTA fines or legal issues, it’s important to follow the correct process and meet all VAT Law conditions when applying for deregistration.

Types of VAT Deregistration in UAE

Understanding the different types of VAT deregistration in UAE helps businesses stay compliant with tax laws and exit the VAT system smoothly.

Mandatory VAT Deregistration

Companies are required to apply for mandatory VAT deregistration in UAE if they’ve stopped offering taxable products or services. Also, if the company’s turnover or taxable expenses in the past 12 months fall below AED 187,500, deregistration is required by law. Failure to apply within 20 business days can lead to fines starting at AED 10,000 or more.

Voluntary VAT Deregistration in UAE

✅ Their annual turnover is between AED 187,500 and AED 375,000.

✅ They want to cancel VAT registration even if the business continues.

There is no strict deadline for voluntary deregistration, but businesses must meet all FTA compliance rules before applying.

VAT Deregistration for Groups

The FTA permits VAT deregistration in UAE for tax groups if:

✅ The tax group conditions are no longer met.

✅ The economic, financial, or regulatory link between members ends.

✅ The tax group structure risks tax evasion or significant tax reduction.

After approval, the VAT number is cancelled, and businesses may re-register later to get a new VAT number.

How to Cancel VAT Registration in UAE?

Want to exit the VAT system smoothly? Here’s how you can cancel your VAT registration in UAE step-by-step using the Emara Tax portal — without facing fines or delays.

✅ Step 1: Log in to the Emara Tax Portal

Go to the official Emara Tax website and log in with your credentials. If you don’t remember your password or don’t have an account, use the ‘Forgot Password’ link or sign up easily.

✅ Step 2: Start the VAT Deregistration Request

Click on the VAT section and choose ‘Deregister’. Before moving ahead, make sure your bank account details are correctly updated.

✅ Step 3: Mention the Reason and Upload Proof

Select the valid reason for applying for VAT deregistration in UAE. Fill in the effective date and attach required documents like turnover details and financials.

✅ Step 4: Review the Information and Submit

Double-check all fields to ensure accuracy. The Federal Tax Authority (FTA) will then review your submission, tax history, and pending dues if any.

✅ Step 5: Receive VAT Cancellation Confirmation

Once FTA verifies and approves your request, your VAT number will be cancelled. In case of missing files or issues, they’ll notify you for additional documents.

Documents Required for VAT Deregistration in UAE

To complete your VAT deregistration in UAE smoothly, make sure you have the following documents ready:

✅ Copy of the cancelled or expired trade license

✅ Official liquidation letter or board resolution confirming business closure

✅ Most recent financial statements (audited or unaudited – including profit & loss, balance sheet, trial balance)

✅ Letter from the Ministry of Labor showing the number of employees (if applicable)

✅ Updated copies of sales agreements or business activity licenses

✅ Full list of suppliers and importers linked to your business

✅ Formal closure declaration (if requested by FTA)

✅ Proof of any pending tax payments cleared

Biggest VAT Deregistration Mistakes UAE Businesses Must Avoid

Avoid costly fines and delays by steering clear of these frequent mistakes when applying for VAT deregistration in UAE:

Outstanding VAT Payments Not Cleared:

Always pay off any VAT you owe before submitting your deregistration.

Trade Licenses Still Active:

Make sure all your business licenses and permits are properly cancelled.

Neglecting Employee Obligations:

Settle all employee wages, benefits, and cancel visas to comply with labor laws.

Bank Accounts Left Open:

Close corporate bank accounts and clear any pending balances before deregistering.

Impact of VAT Deregistration in UAE

Deregistering from VAT in the UAE comes with key changes every business should consider:

✅ No VAT Collection on Sales

After deregistration, your business can no longer add VAT to invoices. This might make your prices more appealing to non-VAT-registered clients — but you also lose the benefit of reclaiming VAT on expenses.

✅ Simplified Tax Responsibilities

You’re no longer required to submit VAT returns or maintain complex VAT records. This reduces both paperwork and compliance-related costs.

✅ Adjustments to Business Planning

VAT deregistration can impact your overall financial strategy, affecting how you manage pricing, cash flow, and long-term planning.

Why Choose Our VAT Deregistration Services in Dubai?

Handling VAT deregistration in UAE isn’t always easy — it requires strict compliance with FTA rules. That’s where IRHA Accounting & Auditing steps in to make the process simple and stress-free by:

✅ Checking if your business qualifies for VAT deregistration

✅ Collecting, preparing, and submitting all required documents

✅ Managing VAT return submissions and clearing any penalties

✅ Coordinating directly with the FTA for fast and accurate processing

If your company is eligible for VAT deregistration in Dubai, reach out to IRHA Accounting & Auditing today. Let us take care of your tax exit, the right way.

FTA's New Deadline is October 2024: Late Registrations Will Incur AED 10,000 Penalty!