When must you deregister from VAT?
- Your business has closed or stopped making taxable supplies
- Your taxable supplies over the last 12 months are below the AED 187,500 voluntary threshold, and aren't expected to exceed it in the next 30 days
When can you choose to deregister?
If your taxable supplies are below AED 375,000 but above AED 187,500, you can usually apply to deregister. Businesses that registered voluntarily generally can't deregister within the first 12 months.
A cancelled licence isn't enough
Closing your trade licence doesn't cancel your TRN. Until the FTA approves VAT de-registration, VAT returns stay due and penalties can build.
Documents required for VAT de-registration
- Trade licence cancellation letter, if the business has closed
- Sales records for the last 12 months
- Latest financial statements
- Details of stock and business assets still held
- TRN and EmaraTax access
How VATAXSYS handles your VAT de-registration
Eligibility check
We confirm whether de-registration is required or optional.
Final VAT return
We prepare your last return, including VAT on remaining assets if required.
Clear balances
We confirm any VAT or penalties to pay.
TRN cancelled
We submit the application and follow up until the FTA approves it.
VAT De-registration FAQs
How long do I have to apply for VAT de-registration?
20 business days from the date your business becomes eligible, for example the date it stopped making taxable supplies.
What is the penalty for late VAT de-registration?
AED 1,000, then a further AED 1,000 for each month of delay, up to a maximum of AED 10,000.
Do I need to file a final VAT return?
Yes. All VAT returns must be filed and any VAT paid before the FTA approves de-registration. Your final return may need to include VAT on stock and assets you still hold.
Does VAT de-registration cancel my corporate tax registration?
No. Corporate tax de-registration is a separate application, with a 3-month deadline.