VAT Deregistration in the UAE: Cancel Your VAT Registration the Right Way
VAT registration is not permanent. If your business has stopped trading or your taxable supplies have dropped, you can apply to the Federal Tax Authority to cancel your TRN. Avyanco assesses eligibility, closes your VAT position and files the application on EmaraTax, so no penalty or open obligation is left behind.
30 business daysTo apply once the deregistration obligation arises
Up to 30 daysFTA processing time from a completed application
FreeGovernment application fee
AED 1,000Late application penalty per month, capped at AED 10,000
Fit check
When must or can you deregister? And what stays
Deregistration ends your VAT obligations only once the FTA approves it in writing. Until then, and for some things afterwards, your duties carry on.
You deregister when
Your business has stopped making taxable supplies: mandatory deregistration
Your taxable supplies over the preceding year fall below the voluntary registration threshold of AED 187,500: mandatory deregistration
You are still trading, but your supplies have dropped below the mandatory registration threshold of AED 375,000 and meet the conditions: voluntary deregistration
You are closing, selling or restructuring the business and VAT is no longer needed
What does not stop on its own
Cancelling or not renewing the trade license does not deregister you for VAT
A liquidation does not inform the FTA or cancel your tax liabilities automatically
Your VAT returns must continue until you receive the FTA's written approval
VAT deregistration does not close your Corporate Tax fileCorporate Tax →
Overview
How VAT deregistration in the UAE works
A VAT registered business can apply to cancel its registration for several reasons: it has stopped trading, its taxable supplies are below the thresholds, or the company is being closed. The application must be made on time to avoid penalties.
Avyanco calculates your liabilities before anything is submitted, including any VAT due on assets and stock still held, then files the application and handles the FTA's questions until your TRN is deactivated.
Watch: what a UAE free zone is, in 35 seconds
EmaraTaxThe FTA portal where the application is filed
Same rules everywhereVAT is federal: free zone and mainland follow one framework
Key facts
VAT deregistration at a glance
From the event that triggers deregistration to the cancelled TRN, these are the stages and the numbers that matter.
01 · THE ROUTE
Trigger to cancelled TRN
Deadlines run from the date the obligation arises. For a turnover trigger, the preceding 12 months are assessed. Your VAT duties stay active until the FTA approves in writing.
Trigger event: business stops or turnover fallsDAY 0
Deemed supply calculated on assets and stockPREPARE
Final return filed and liabilities settled28 DAYS
Application filed on EmaraTax30 BUSINESS DAYS
FTA review and queries, returns continueUP TO 30 DAYS
TRN deactivated, certificate issuedDONE
02 · FEE
Free
Government application fee
The FTA charges nothing for the application. Delay is what costs money.
03 · LATE PENALTY
AED 1,000
Per month, capped at AED 10,000
For each month or part of a month the application is late (Cabinet Decision No. 129 of 2025).
04 · THRESHOLDS
AED 187,500 and AED 375,000
The voluntary and mandatory registration thresholds decide whether deregistration is mandatory or voluntary.
05 · RECORDS
Keep records for five years
Your tax records must still be kept after the TRN is cancelled.
06 · BEFORE YOU APPLY
Settle the final VAT position first
We review your returns, deemed supply and debts first, so the application is complete when the FTA receives it.
It applies when the business stops making taxable supplies, or when taxable supplies over the preceding year fall below the voluntary registration threshold of AED 187,500.
Deadline30 business days
ThresholdAED 187,500
TriggerSupplies stop or fall
Business has stopped making taxable supplies
Supplies fell below the voluntary threshold over the preceding year
It applies to businesses that are still running but no longer need to be registered. It occurs when the taxable turnover for the next year is expected to fall under the deregistration threshold.
Mandatory limitAED 375,000
Voluntary limitAED 187,500
AlsoExempt supplies
Supplies below the AED 375,000 mandatory threshold
Still above the AED 187,500 voluntary limit
Businesses making exempt supplies may also qualify
Appointing a liquidator or cancelling the trade license does not tell the FTA or cancel your tax liabilities. Apply for VAT cancellation when the business stops making taxable supplies, with the board resolution, license cancellation or liquidation as evidence.
License cancelledDoes not deregister
LiquidationNot automatic
Corporate TaxSeparate file
VAT and Corporate Tax have independent deadlines
Cancelling the TRN does not close the Corporate Tax file
Once the FTA approves the application, the final return is accepted and liabilities are settled, the FTA issues the digital deregistration certificate through your EmaraTax dashboard.
Keep the returns, tax invoices, accounting records and essential documents for the statutory retention period, which can depend on the type of record and transaction.
These are the periods that run from the trigger event to the cancelled TRN.
Key time limits and fees for VAT deregistration in the UAE
Item
Time or fee
Apply for deregistration after the trigger
30 business days
FTA processing of a complete application
Up to 30 business days
Final return and payment
28 days after the period end
Government application fee
Free
Keep tax records after TRN cancellation
5 years
Deadlines run from the date the obligation arises. For a turnover trigger, review the preceding 12 months at each month end to track your rolling turnover. Not sure you are registered correctly? See our VAT registration service.
EmaraTax application
Five steps to deregister for VAT on EmaraTax
We follow a structured process so your financial and legal position is clean before the FTA reviews it.
1
Eligibility and financial review
We audit your turnover and business status to confirm mandatory or voluntary deregistration, and pin down the exact date your supplies fell or ceased, which drives the deadline.
2
Settle outstanding liabilities
Before the request is approved, we file pending returns and clear outstanding penalties and tax amounts.
3
Submit the application
We file the deregistration form on EmaraTax with supporting documents such as updated financial statements or liquidation certificates, and a clear reason for cancellation.
4
FTA liaison and queries
If the FTA asks for clarification or financial evidence, we act as your representative and keep the application on track.
5
Approval and TRN deactivation
Once the FTA is satisfied, it approves and deactivates the TRN. We give you the final certificate for your records.
Keep filing until approvedYour returns and VAT duties continue until you receive official written approval.
Five-year record keepingTax records must still be kept after the TRN is cancelled. We remind you which ones.
Why Avyanco
One partner-led team, start to finish
Licence, bank account, visas and tax handled by one named advisor, with government fees and our fee always shown separately.
11,500+Businesses formedMainland · Free Zone · Offshore
45+Free ZonesRAKEZ · IFZA · DMCC · DIFC · KEZAD
21+Years' advisory experiencePartner-led firm, founded 2020
4.8★Client rating745 verified Google reviews
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How long does the FTA take to approve deregistration?+
It depends on how complete the application is, the FTA's review, your documents and any requests for more information. The FTA's stated processing time is up to 30 business days from a completed application.
Can I cancel my VAT registration in the UAE if my turnover drops?+
Yes, depending on your taxable supplies and circumstances. The AED 187,500 and AED 375,000 thresholds are relevant, but eligibility must be assessed under the applicable rules.
Is VAT deregistration different for free zone companies?+
No. VAT is a federal tax, so the same UAE VAT framework applies to free zone and mainland businesses. The documents you need depend on your circumstances.
Do I pay VAT on stock I still hold?+
VAT may be due on capital assets and stock for which input tax was recovered. The deemed supply rules and adjustments are dealt with in the final return.
Do I also need to deregister for Corporate Tax?+
VAT and Corporate Tax registrations are separate. Review the Corporate Tax deregistration requirements and meet the deadline for each tax.
Can the FTA deregister me without an application?+
No. The FTA does not deregister you automatically. Where deregistration is required, you must submit the application and follow the FTA's instructions.
Can you help if my trade license is already cancelled?+
Yes. We review your existing tax account, closing documents and outstanding obligations, then prepare the application.
Can I register again later?+
You may register again if your business meets the VAT registration criteria. Review the requirements before you resume taxable activities.
VAT deregistration needs careful planning and reporting under FTA guidelines, and errors or delays can mean penalties and prolonged obligations. Whether you are closing or restructuring, tell us your situation and we take you through a smooth VAT exit. No obligation.
Eligibility and thresholds checked first
Final return, deemed supply and debts settled before filing
FTA queries handled until your TRN is cancelled
Talk to Jaikishan, tax consultantTypically replies within one business day
DET licence #909402FTA-registered tax agents11,500+ businessesFixed fee · no hidden costs
Sources: Federal Tax Authority (FTA) · EmaraTax · UAE VAT law and executive regulation · Cabinet Decision No. 129 of 2025 (administrative penalties).
Verification & independence: Avyanco Business Consultancy LLC is a private firm, independent of the Federal Tax Authority and every other UAE authority, and not affiliated with any UAE government agency. Deadlines, thresholds, penalties and processing times are set by the FTA, vary by business and case, and change over time. This page is general guidance, not tax or legal advice. Confirm your position with the FTA or with us before acting.
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