VAT Dregistration in UAE is the process of canceling or removing your business from the UAE VAT system when you no longer meet the registration criteria or when you cease operations. If done correctly and on time, it safeguards you from penalties, compliance burdens, and unnecessary tax filings.
In a dynamic business environment like the UAE, knowing when and how to deregister is as important as registering in the first place. Mistakes or delays here can cost you up to AED 10,000 in administrative penalties.
This blog will guide you step by step through the process, pitfalls, and how Union Global Solutions DXB can help you execute a seamless, compliant VAT deregistration in UAE.
Why the Right Deregistration Matters (and Why You Can’t Ignore It)
- Cost Avoidance: Missed deadlines or incomplete filings can trigger fines (AED 1,000/month up to AED 10,000)
- Regulatory Clean Exit: Proper closure ensures you don’t remain on FTA’s radar for unused TRN compliance.
- Cash Flow Optimization: Once deregistered, you stop charging VAT but also lose the ability to claim input VAT, so timing matters.
- Audit Protection: The FTA may still audit prior VAT periods; your records must remain intact.
Our VAT Deregistration Services by Union Global Solutions
At Union Global Solutions DXB, we specialize in guiding businesses through VAT Deregistration in UAE end-to-end from eligibility assessment to certificate issuance. Our typical service includes:
- Eligibility Evaluation & Strategy
- Review past 12-month turnover, supply mix, cost structure
- Determine whether voluntary or mandatory deregistration path
- Craft a timing and risk plan
- Documentation & Preparation
- Prepare financial records, final stock/asset schedules
- Prepare a deregistration request with full justifications
- Anti–money laundering (AML) compliance checks
- FTA Portal Submission
- Fill and submit the deregistration request via EmaraTax (FTA portal)
- Upload supporting documents (Excel templates for supplies/expenses)
- Monitor and respond to FTA queries
- Final Return & Liability Settlement
- File the final VAT return covering the period until deregistration date
- Ensure all pending tax, interest, and penalties are paid
- Certificate & Closure
- Obtain your Deregistration Certificate
- Confirm status change in FTA portal
- Guide retention of records and post-deregistration obligations
- Post-Deregistration Monitoring
- Ensure no residual VAT filings are missed
- Advise on re-registration if business revives
- Ensure no residual VAT filings are missed
We also provide AML & anti-layering checks during the process, shielding you from compliance risks associated with illicit financial flows.
What Is VAT Deregistration in UAE?
Under UAE VAT law (Federal Decree-Law No. 8 of 2017 and the Executive Regulations), deregistration means removal of your Tax Registration Number (TRN) when your business no longer meets registration criteria or when you cease taxable operations.
Once deregistered:
- You must stop charging VAT on further supplies
- You cannot claim input VAT on subsequent purchases
- Your VAT compliance obligations (filing returns, audits) no longer apply for new transactions
- You must retain your historical tax records (generally 5 to 15 years)
The FTA issues a Deregistration Certificate in approved cases, visible on EmaraTax.
When Should You Deregistration from VAT in the UAE?
You must apply for deregistration within 20 business days of the triggering event (as per Article 21).
Mandatory Deregistration Scenarios: You are required to deregister if:
- You cease all taxable supplies and do not expect to resume within the next 12 months.
- Your business turnover falls below the voluntary threshold (AED 187,500 over 12 consecutive months) and you do not expect to exceed it again soon.
Voluntary Deregistration Option: Even if not mandatory, you may opt to deregister if:
- Your turnover over 12 months is between AED 187,500 and AED 375,000 (i.e. you’re below the mandatory threshold) and you choose not to remain registered.
- Note: If you voluntarily registered for VAT, you cannot deregister within the first 12 months from registration.
Step-by-Step Process to Deregistration VAT in UAE
Here is how you deregister in the UAE, with best practices to ensure approval:
Step 1: Access EmaraTax (FTA Portal)
- Log in using your usual credentials or UAE Pass.
- Navigate to “VAT” → Actions → Deregister under your taxable person record.
Step 2: Initiate Deregistration Application
- Click “De-Register” or “Deregister” (sometimes labelled “Cancellation”)
- If needed, “Edit/Review” existing info (bank, contact details) before continuing.
Step 3: Provide Justification & Effective Date
- Choose the reason: cessation, turnover drop, structural change, business closure.
- Enter the effective deregistration date. The FTA may accept your preferred date if within the allowed period.
Step 4: Submit Supplies & Expenses Details
- Download Excel template (or fill directly online) that reports taxable supplies and input expenses up to deregistration date.
- Ensure amounts are in AED, accurate and verifiable.
Step 5: Authorized Signatory & Declaration
- Confirm the signatory, fill relevant fields.
- Review all entries, check affirmation boxes, and submit.
Step 6: Post-Submission Monitoring
- Application status will move to Pre-Approved initially.
- If FTA needs more documents or clarification, you’ll be notified.
- Ensure you continue submitting regular VAT returns (even zero) until cancellation is final.
Step 7: Final Return & Liability Settlement
- File a Final VAT return for the period up to the effective date.
- Pay all outstanding tax, interest, and administrative penalties before deregistration is approved.
Step 8: Approval & Certificate
- Once everything is cleared and reviewed, your registration will be officially terminated.
- You can download the deregistration certificate from EmaraTax.
Tips to Prevent Money Laundering & Layering Risks
When deregistering, the FTA may scrutinize your application for signs of money laundering or layering. To fortify your position:
- Provide transparent source-of-funds explanations: (especially where adjustments or large refunds are involved).
- Clean audit trail: Avoid unsubstantiated journal entries close to deregistration.
- Support transfers and related-party transactions: with documentation and pricing policies.
- No abrupt large cash injections or withdrawals: just before filing.
- Engage compliance professionals: (such as Union Global Solutions DXB) to perform internal AML risk review prior to submission.
- Retain supporting documents: For at least 5–15 years; FTA or law enforcement agencies can request them.
These controls help FTA accept your deregistration request without suspicion.
Important Timeframes & Deadlines
Missing these windows or failing to file the final return can delay your deregistration or invite fines.
Fulfill All Criteria to Deregistration for VAT in UAE
Before applying, ensure:
- You meet eligibility (turnover, cessation, etc.).
- All outstanding returns filed up to the date.
- All tax liabilities, penalties, interest settled.
- Complete schedule of supplies & expenses prepared.
- Documents verifying cessation or business changes (liquidation, license cancellation, restructuring).
- No open tax disputes or audits unresolved.
- You’ve respected the 12-month rule if voluntarily registered.
- Your application is timely (within 20 business days).
FTA will reject applications if any of these criteria are unmet.
Does a VAT Certificate Expire in the UAE?
A VAT Deregistration certificate (TRN) doesn’t have a natural expiry date while the business remains compliant and eligible. However:
- If your deregistration is approved, your TRN is canceled.
- If your business no longer qualifies (turnover drops), you must voluntarily deregister.
- If you remain noncompliant (fail to submit returns), FTA may suspend or cancel registration.
So, while there is no “expiry,” continued eligibility and compliance are critical to maintain validity.
How Does CDA / Union Global Solutions Help You in Deregistration?
Though you asked “How does CDA help,” in the context of Union Global Solutions DXB, here’s how we mirror and enhance such support:
- Full process ownership: From eligibility audit to submission & approval.
- Pre-submission compliance audit: We check for AML, layering, inconsistencies.
- Document drafting & validation: We prepare and cross-verify all schedules and justifications.
- Portal management: We handle EmaraTax submission, monitoring, responses.
- Final return and settlement: Ensure no missed liabilities.
- Certificate retrieval & status confirmation.
- Post-deregistration support: Advising on residual risk, re-registration, record retention.
- Transparent fixed fees & timeline commitments to reduce client uncertainty.
By integrating compliance, tax, audit, and legal insights, we minimize rejection risk and speed up your deregistration.
Conclusion
If your business in the UAE no longer meets the VAT registration criteria or is winding up operations, VAT deregistration in UAE is not optional, it’s mandatory. With tight deadlines, penalties for non-compliance, and technical requirements, a misstep here can cost much more than just a late fee.
Let Union Global Solutions DXB shoulder the regulatory burden and ensure a clean, defensible exit from VAT. We’ll assess your eligibility, prepare your application, guard against AML risks, and see the process through to certificate issuance.
Contact us today for a free consultation to get clarity, compliance, and peace of mind on your VAT deregistration.
Frequently Asked Questions (FAQs)
No, if you voluntarily registered, you must wait 12 consecutive months before applying for deregistration.
Typically 20 business days, but this may extend if additional documents are required.
Yes, maintain records for at least 5 years (longer for real estate or major assets)
NOTE:
The above note is subject to further study and clarification. It does not constitute a formal opinion from our end. Before making any decisions based on the above, we recommend consulting our experts on the subject.
