VAT deregistration in Dubai and the UAE
If your business has stopped making taxable supplies, or its taxable supplies have fallen below AED 187,500, you need to cancel your VAT registration with the Federal Tax Authority (FTA). You must apply within 20 business days of becoming eligible, and a fixed penalty applies if you are late. We check your eligibility, prepare your final VAT return and submit the application through your EmaraTax account, from AED 500 one-off (excl. VAT).
Who needs this
- Companies closing down or going into liquidation
- Businesses that have stopped making taxable supplies
- Businesses whose taxable supplies have fallen below AED 187,500
- Owners who sold or transferred their business to another entity
- Businesses that stopped trading but never cancelled their TRN
- Companies whose deregistration application is stuck or was rejected
What's included
- Eligibility check against the FTA rules
- Working out the date you became eligible and your application deadline
- Bringing VAT records up to date to the deregistration date
- Final VAT return preparation
- Review of VAT due on business assets and stock held at deregistration
- Reconciliation of your FTA account balance
- Deregistration application through your EmaraTax account
- Answering FTA questions until your TRN is cancelled
Documents we'll ask for
- TRN certificate and EmaraTax access
- Trade licence, or cancellation or liquidation documents if you are closing
- Sales and purchase records for the last 12 months
- Bank statements for the last 12 months
- Fixed asset and stock list at the deregistration date
- Copies of past VAT returns
How it works
- Step 1
Check eligibility and deadline
We confirm that you are eligible to deregister, work out the date you became eligible, and set the 20 business day deadline for your application.
- Step 2
Bring records up to date
We make sure all VAT returns up to the deregistration date are filed and your records support them, including any corrections needed.
- Step 3
Final return and balance
We prepare the final VAT return, including any VAT due on assets and stock you still hold, and reconcile your FTA account balance.
- Step 4
Submit and follow through
We submit the application through your EmaraTax account and answer FTA questions until the registration is cancelled.
When you must deregister for VAT
You must apply to cancel your VAT registration when you stop making taxable supplies, or when your taxable supplies fall below AED 187,500. The application is due within 20 business days of the date you become eligible. Business days exclude weekends and public holidays, so the deadline comes sooner than many owners expect.
Common triggers include closing the company, selling or transferring the business, ending a project-based activity, or moving to only exempt supplies. If your business has slowed down, we look at your taxable supplies over the relevant period to see whether you have crossed the line.
If your taxable supplies have dropped but remain above AED 187,500, deregistration is generally not required. Talk to us before applying so you do not cancel a registration you still need.
What goes into your final VAT return
Your final VAT return covers the period up to your deregistration date. All VAT on sales up to that date must be declared and paid, and any VAT you are entitled to recover on purchases must be claimed.
VAT may also be due on business assets and stock you still hold at deregistration, where you recovered input VAT when you bought them. This catches many businesses by surprise, especially those with vehicles, equipment or unsold inventory. We list these items and calculate the VAT with you.
If your FTA account shows a credit balance, plan how to claim it. From 1 January 2026, a 5-year limit applies to claiming refunds of excess input tax and credit balances. Older balances can be claimed until 31 December 2026.
VAT deregistration and closing your company
VAT deregistration is a separate process from cancelling your trade licence. Both need to be done, and in the right order, so one does not hold up the other. We plan the steps with you and your licensing authority.
Your corporate tax registration is also separate. A final corporate tax return may be due for your last tax period, so we check your corporate tax position at the same time.
Records do not disappear when the business closes. Keep VAT records for at least 5 years under the general rule, and accounting and corporate tax records for at least 7 years. Real estate VAT records must be kept for 15 years.
Common deregistration mistakes
The most common mistake is waiting. Owners often stop trading and plan to deal with VAT later, but the 20 business day deadline runs from the date you became eligible, not from the date you remember. Late applications attract a fixed penalty.
The second is applying with gaps in your filing history. If earlier VAT returns are missing or wrong, the FTA will usually want them fixed before it cancels the registration. We check your filing history first and correct errors through a voluntary disclosure where needed. Since 14 April 2026, voluntary disclosure penalties are around 1% per month of the tax difference.
The third is forgetting the assets. Vehicles, equipment and stock bought with VAT recovered can create VAT to pay on the final return. Listing them early means the final figure is not a surprise.
Penalties and risks to avoid
Late deregistration
You must apply within 20 business days of becoming eligible. If you apply late, a fixed penalty applies. Check the FTA penalty table for the current amount.
Unpaid VAT on the final return
From 14 April 2026, under Cabinet Decision No. 129 of 2025, late payment is charged at 14% per year, calculated monthly.
Unclaimed credit balances
From 1 January 2026, refunds of excess input tax and credit balances are limited to 5 years. Older balances can be claimed until 31 December 2026.
Reviews after closure
In cases of evasion or non-registration, the FTA audit window can extend up to 15 years, so keep your records after the business closes.
Questions about VAT deregistration
When should I deregister for VAT in the UAE?
Apply within 20 business days of becoming eligible, which is when you stop making taxable supplies or your taxable supplies fall below AED 187,500.
What is the penalty for late VAT deregistration?
A fixed penalty applies if you apply after the 20 business day deadline. Penalties were revised from 14 April 2026, so check the current FTA penalty table for the amount.
How long does VAT deregistration take?
The FTA reviews each application and may ask for more information, so timing varies. Applying on time with a correct final return and clear records avoids most delays.
Do I need to file a final VAT return?
Yes. The final return covers the period up to your deregistration date and may include VAT on assets and stock you still hold.
Can I get a VAT refund when I deregister?
If your FTA account has a valid credit balance, you can claim it. From 1 January 2026, a 5-year limit applies, and older balances can be claimed until 31 December 2026.
How much does VAT deregistration cost?
Our VAT deregistration service starts from AED 500 one-off (excl. VAT). Catching up on missing VAT returns is quoted after a short review.
Is VAT deregistration the same as cancelling my trade licence?
No. They are separate processes with separate authorities. Your corporate tax registration is separate too, so plan all three together.
Get a price for VAT deregistration
Pick your services, answer a few questions and get an itemised estimate in AED. An accountant confirms a fixed fee within one working day.