VAT Deregistration in UAE: Guide 2025

Businesses in the UAE that are no longer eligible for VAT registration must go through the VAT deregistration in UAE process. Whether you’re closing your business or your taxable turnover has dropped below the threshold, deregistration is a legal requirement.

Handled through the Federal Tax Authority’s (FTA) EmaraTax portal, VAT deregistration helps prevent penalties and ensures compliance. However, many businesses face complications, especially if there’s a VAT delay in UAE.

At Fandeez, we simplify this process with expert guidance and ensure your exit from the VAT system is smooth and penalty-free.

Documents Required for VAT Deregistration in UAE

To initiate the VAT deregistration in UAE, businesses must submit several documents that confirm the cessation of taxable activities. Submitting accurate paperwork helps avoid unnecessary delays and penalties.

Here’s what you’ll typically need:

• Cancelled or revoked trade license
• Board resolution or liquidation letter
• Recent audited or unaudited financial statements (P&L, balance sheet, or trial balance)
• Employee count verification from the Ministry of Human Resources
• Updated or cancelled sales agreements and contracts
• Supporting letter confirming cessation of business (if applicable)
• Supplier and importer list with location details
• Formal request letter (signed and stamped) stating non-operation
• TRN certificate and records of multiple TRNs if any
• Financial turnover template, including taxable supplies and expenses

In case of a VAT delay in UAE, incomplete documentation is one of the most common causes. Ensure everything is in place before applying.

Who Needs to De-register for VAT?

VAT deregistration in UAE is not optional—it’s a legal requirement for businesses that no longer meet the registration criteria. If your business fits any of the below cases, you must initiate deregistration:

• Your taxable supplies have completely stopped.
• You don’t expect to make taxable supplies in the next 12 months.
• Your taxable turnover in the last 12 months is below AED 187,500.
• You voluntarily registered and it has been over 12 months since registration, but your turnover stayed below AED 375,000.

Failing to act in time could lead to a VAT delay in UAE, often resulting in penalties. Our experts at Fandeez can help you determine your eligibility and ensure smooth VAT deregistration.

VAT Deregistration Process | Step-by-Step Guide

Here’s how you can complete your VAT deregistration in UAE using the EmaraTax portal:

Step 1: Log In to EmaraTax

Access the portal using your credentials or UAE Pass. If you don’t have an account, sign up or reset your password as needed.

Step 2: Navigate to VAT Deregistration

Go to your dashboard, click on the VAT section, choose ‘Actions’, then select ‘Deregister’.

Step 3: Review and Edit Details

Update your bank info if necessary. If not, click “Proceed to Deregistration”.

Step 4: Read the Instructions

Review the FTA guidelines. Confirm your understanding before you proceed.

Step 5: Fill Out the Application

Choose the reason for VAT deregistration, provide supporting info, and enter your effective date.

Step 6: Report Taxable Data

Either upload the taxable income/expense Excel template or fill it in directly on the portal.

Step 7: Verify Signatory Info

Ensure the authorized person’s details are correct, then move to the next step.

Step 8: Final Review & Submit

Double-check your entries. Accept the declaration and submit.

Step 9: Post-Submission

Track your application using the reference number. The FTA may request more documents or a final return. Delays or unpaid dues may cause a VAT delay in UAE.

Common Mistakes During VAT Deregistration in UAE

Many businesses make critical errors during the VAT deregistration process, which can lead to delays and penalties. Here’s what to watch out for:

• Unpaid VAT or Other Taxes
• Incomplete Tax Returns
• Active Trade Licenses
• Labor Law Violations
• Bank Account Issues

Avoiding these mistakes ensures a smooth and penalty-free VAT deregistration experience in the UAE.

Consequence of Business Deregistration in UAE

Undergoing VAT deregistration in UAE marks the formal closure of a business’s tax obligations, but it also comes with serious consequences. Once deregistered, the company loses its legal status and can no longer engage in commercial activities. All trade licenses and government permits are revoked, which means the business must cease operations completely. Employers must also cancel all employee visas and ensure labor dues are paid. Failing to complete these steps properly can result in a VAT delay in UAE or penalties from the Federal Tax Authority. Businesses must also ensure all tax liabilities are cleared to avoid legal repercussions.

Frequently Asked Questions

Conclusion

VAT deregistration in UAE is a crucial step for businesses that have ceased taxable activities or no longer meet the registration thresholds. While the process may seem straightforward, missing documentation or compliance gaps can result in delays and penalties. By understanding the requirements, avoiding common mistakes, and following the FTA’s step-by-step process, businesses can successfully deregister without hassle. At Fandeez, we simplify your VAT deregistration journey with expert guidance and end-to-end support—ensuring a smooth and compliant exit from the UAE tax system.