VAT Deregistration in the UAE

If your business no longer needs to be registered for VAT, the registration must be cancelled through the Federal Tax Authority (FTA). Staying registered after you stop trading can mean continued returns and penalties, so it is worth doing correctly and on time.

When you can or must deregister

• Mandatory: cessation of taxable supplies or falling below the voluntary registration threshold may create an obligation to deregister, subject to the applicable conditions. Check the deadline promptly rather than waiting for the next VAT return.
• Voluntary: a business with taxable supplies below the mandatory threshold may be eligible to apply, depending on its supplies, expenses and the applicable conditions. This is different from a mandatory cancellation.
• Other cases: the business is sold, closed, or its trade licence is cancelled.

What deregistration involves

• Reviewing your position and deciding whether it is mandatory or voluntary
• Preparing the final VAT return and settling any VAT due
• Accounting for VAT on business assets still held at deregistration, where it applies
• Submitting the application on EmaraTax with supporting documents
• Answering FTA queries until your TRN is cancelled

Why use a tax agent

Missing the deadline or leaving returns unfiled can lead to administrative penalties. As an FTA-approved tax agent in Ajman, we handle the application and correspondence for businesses across all UAE emirates, so you can close the file with confidence.

When you must apply to deregister

The FTA distinguishes applications based on cessation of taxable supplies, supplies below AED 187,500, and supplies above AED 187,500 but below AED 375,000. The applicable conditions and deadline depend on the reason for deregistration. Review your records and the current official FTA service requirements before applying. Keep filing and payment obligations under review until cancellation is completed.

What we handle

• Confirm that you qualify and prepare the application on the EmaraTax portal
• File your final VAT return and settle any VAT payable
• Account for VAT on goods and assets still held at the deregistration date, where applicable
• Respond to any Federal Tax Authority questions on the application

Related: VAT registration in the UAE | Corporate Tax guide 2026 | Contact us

This page is general information, not advice on your particular facts. Rules and time limits can change, so contact us and we will check your position with the FTA requirements.