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What you need to know now
VAT deregistration requires an eligibility review, an FTA application and completion of the final VAT position. Cancelling a trade licence does not itself close the tax account.
- Identify the event creating the deregistration obligation.
- Current FTA guidance states 30 business days for a mandatory application.
- Final return and payment are due 28 days from the effective date.
Identify why deregistration is being considered
A closed shop, cancelled licence or reduced sales figure does not by itself complete VAT deregistration. Record the event affecting the taxable person and review all of its activities, including any remaining supplies or imports. Distinguish a mandatory application from a request based on eligible voluntary circumstances. This initial analysis should explain why the chosen reason applies, the relevant dates and the evidence supporting it before the application is started.
Prepare cessation and turnover evidence
Collect documents matching the reason given, such as business-closure evidence, licence records, sale agreements or turnover information. Reconcile the figures to the accounts and identify continuing contracts or transactions that might appear inconsistent with cessation. Review outstanding receivables, supplier credits and assets as part of the final tax analysis. Do not assume that amounts stop mattering for VAT merely because the operating licence has been cancelled or staff have left.
Follow the decision and effective date
Submit through the current FTA service and retain the application reference. Respond to information requests and distinguish the submission date from the effective deregistration date confirmed by the authority. The September2026 service card should be used for current application instructions rather than older time estimates in the original article. An application acknowledgement alone should not be treated as permission to stop complying with obligations that remain applicable while the request is being considered.
Close the final position and retain the file
Check the final return and payment requirements, reconcile any balance and retain the deregistration certificate. Keep the working papers explaining the final tax treatment and any correspondence about unresolved items. Confirm that invoicing and accounting systems have been updated to the approved position so an old TRN is not used inadvertently. Deregistration closes a registration status; it does not erase the transaction history or remove the need to retain and provide relevant records. Keep an accessible contact and records location for questions arising after closure, especially where the former manager or accounting provider no longer acts for the business.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
Prepare cessation or turnover evidence.
- 02
Step 2
Submit the deregistration application through EmaraTax.
- 03
Step 3
Complete final liabilities and retain the digital certificate.
CLEAR ANSWERS
Frequently asked questions
Does submitting the application cancel the TRN immediately?
Follow the effective date and decision issued by the FTA.
Can final returns be ignored when the licence ends?
No. Complete the final tax obligations.
Earlier article & background First published 6 January 2020 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
VAT Deregistration UAE : FTA defines conditions for companies to de-register from VAT in UAE
VAT Deregistration UAE : Failing to submit application could lead to the imposition of administrative penalties
The Federal Tax Authority, FTA, has defined the conditions for tax de-registration, in accordance with Federal Decree-Law No. 8 of 2017. The Authority clarified the conditions and procedures for de-registration for Value Added Tax (WAT), since its implementation.
The FTA explained that if a registrant stops making taxable supplies or if the value of the taxable supplies made by the registrant over a period of 12 consecutive months is less than the voluntary registration threshold of Dh187,500 and it is not expected that the total value of the registrant’s anticipated taxable supplies or expenses subject to tax in the coming 30-day period will exceed the voluntary registration threshold, then the registrant must submit a de-registration application to the Authority.
The de-registration application must be submitted within 20 business days of the occurrence of any of the aforementioned cases using the Authority’s e-Services portal, adding, “knowing that failing to submit the de-registration application within the period specified in the tax legislation will lead to the imposition of administrative penalties as stipulated in the Cabinet Resolution No. 40 of 2017 on Administrative Penalties for Violations of Tax Laws in the UAE.”
The Authority confirmed that registrants will not be de-registered unless they have paid all due taxes and administrative penalties and filed all required tax returns for the period in which they were registered as stipulated under the tax legislation.
The FTA asserted that the UAE Tax System is based entirely on voluntary compliance by Taxable Persons, whether it being with regards to registration, filing Tax Returns and payment of due tax or de-registration, noting that these services are available free of charge.
The de-registration procedures can be completed within a few minutes via the FTA e-Services portal, available 24/7 on the Authority’s website : www.tax.gov.ae, which was designed in accordance with international best practices to facilitate compliance with the tax obligations of taxable persons with the easiest and fastest technological means in order to provide guidance and raise tax awareness among all segments of the community.
Courtesy : Gulf News : https://gulfnews.com/business/fta-defines-conditions-for-companies-to-de-register-from-vat-in-uae-1.61686145
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Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
