VAT Deregistration
Ensure compliance with Stratify’s VAT Deregistration services. We help businesses seamlessly close VAT accounts, avoid penalties, and meet FTA regulations with expert guidance and support.
VAT Deregistration Services
VAT deregistration refers to the formal process of cancelling a company’s VAT registration with the FTA. This occurs when a business no longer meets the criteria for VAT registration, such as falling below the mandatory turnover threshold or ceasing operations. By deregistering, the business is no longer obligated to charge VAT on goods or services or file VAT returns.
A business is required to apply for VAT deregistration in the UAE if:
- If a company stops supplying goods or services that are subject to VAT.
- The business’s taxable supplies over the past 12 months fall below AED 375,000 (the mandatory registration threshold) or are expected to remain below this threshold for the upcoming year.
- If a company has permanently stopped trading or has been liquidated.
VAT Deregistration Process
Eligibility Check
The first step is determining whether the business is eligible for deregistration. A business must ensure it meets the criteria for VAT deregistration set by the FTA, such as falling below the mandatory registration threshold or ceasing taxable activities.
Submit an Application
The VAT deregistration application must be submitted online through the FTA’s e-services portal. The business owner or their representative will need to log in, complete the deregistration form, and provide supporting documents.
FTA Review
After submission, the FTA reviews the application. This may involve further clarification or documentation to verify eligibility for deregistration. During this time, the business must continue to comply with VAT regulations, including filing returns and paying VAT dues.
Final VAT Return
As part of the process, the business will be required to file a final VAT return, covering the period up to the date of deregistration. Any outstanding VAT liabilities must be settled before the deregistration process can be completed.
Deregistration Approval
Once the FTA has reviewed and approved the application, the business will be officially deregistered. The company will no longer be required to file VAT returns or charge VAT on taxable supplies.
VAT Deregistration Process
Eligibility Check
The first step is determining whether the business is eligible for deregistration. A business must ensure it meets the criteria for VAT deregistration set by the FTA, such as falling below the mandatory registration threshold or ceasing taxable activities.
Submit an Application
The VAT deregistration application must be submitted online through the FTA’s e-services portal. The business owner or their representative will need to log in, complete the deregistration form, and provide supporting documents.
FTA Review
After submission, the FTA reviews the application. This may involve further clarification or documentation to verify eligibility for deregistration. During this time, the business must continue to comply with VAT regulations, including filing returns and paying VAT dues.
Final VAT Return
As part of the process, the business will be required to file a final VAT return, covering the period up to the date of deregistration. Any outstanding VAT liabilities must be settled before the deregistration process can be completed.
Deregistration Approval
Once the FTA has reviewed and approved the application, the business will be officially deregistered. The company will no longer be required to file VAT returns or charge VAT on taxable supplies.
Documents Required for VAT Deregistration
The following documents are required when applying for VAT deregistration
Company trade license
Confirms the business's authorization to operate and verifies its legal standing.
Copy of VAT Registration certificate
Serves as proof of initial VAT registration and is essential for tracking VAT status changes.
Details of the company’s taxable turnover for the last 12 months
Provides evidence of turnover, which is critical to demonstrate eligibility for deregistration.
Financial statements showing the company’s current VAT liability
Reflects outstanding VAT obligations, ensuring all dues are settled before deregistration.
Proof of cessation of business activities
Required if the business has ceased operations, confirming there is no longer a need for VAT registration.
Documentation showing the company’s turnover has fallen below the deregistration threshold
Demonstrates that the business's turnover is below the limit, supporting deregistration eligibility.
Documents Required for VAT Deregistration
The following documents are required when applying for VAT deregistration
Company trade license
Confirms the business's authorization to operate and verifies its legal standing.
Copy of VAT Registration certificate
Serves as proof of initial VAT registration and is essential for tracking VAT status changes.
Details of the company’s taxable turnover for the last 12 months
Provides evidence of turnover, which is critical to demonstrate eligibility for deregistration.
Financial statements showing the company’s current VAT liability
Reflects outstanding VAT obligations, ensuring all dues are settled before deregistration.
Proof of cessation of business activities
Required if the business has ceased operations, confirming there is no longer a need for VAT registration.
Documentation showing the company’s turnover has fallen below the deregistration threshold
Demonstrates that the business's turnover is below the limit, supporting deregistration eligibility.
How Stratify Can Help
At Stratify, we assist businesses through every step of the VAT deregistration process to ensure compliance with the UAE’s VAT laws. Here’s how we can help:
Eligibility Assessment
Our tax experts will conduct a thorough review of your business activities and financials to determine whether your company qualifies for VAT deregistration.
Document Preparation
We will help gather and prepare all necessary documentation to support your application, ensuring that everything is in order before submission.
Submission and Follow-Up
We will handle the entire application process on your behalf, including filing the application with the FTA and addressing any follow-up queries.
Final VAT Return Filing
Our team will assist you in preparing and filing the final VAT return to ensure that all obligations are met before deregistration is approved.
Post-Deregistration Support
Once your business has been deregistered, we can provide ongoing advice and support to ensure that you remain compliant with any remaining obligations related to VAT.
Start your Business Today
Start your Business Today
Our Other Value Added Tax Services
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
Value Added Tax
Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
Read More
Corporate Tax
Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
Read More
Excise Tax
We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
Read More
Accounting Outsourcing
Streamline your financial operations by outsourcing your accounting needs, from bookkeeping to financial reporting, for efficient management.
Read More
Customs
Simplify import-export procedures and ensure compliance with UAE Customs regulations through advisory, registration, and customs reconciliation services.
Read More
Company Formation
Start your business in the UAE with expert guidance on company incorporation, licensing, and compliance with local regulations.
Read More
Audit & Assurance
Our audit and assurance services provide reliable financial insights, ensuring transparency and compliance with regulatory requirements.
Read More
Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
Read More
Frequently Asked Questions
When should I apply for VAT deregistration?
You should apply for VAT deregistration within 20 business days of ceasing taxable supplies or when your taxable turnover falls below the mandatory threshold of AED 375,000.
What happens if I don’t apply for VAT deregistration?
Failure to apply for VAT deregistration when required can result in fines and penalties. The FTA may also deregister the business on its own if the criteria are met.
Do I still need to file VAT returns during the deregistration process?
Yes, you must continue to file VAT returns and comply with all VAT obligations until the FTA has officially approved your deregistration.
What is the final VAT return?
The final VAT return is a closing return that covers the period from your last return to the date of deregistration. It must be filed before your VAT account can be closed.
Can I re-register for VAT after deregistration?
Yes, if your business’s taxable supplies exceed the registration threshold in the future, you may re-register for VAT by applying through the FTA.
How long does it take for the FTA to approve VAT deregistration?
The FTA typically takes 20 business days to review and approve the VAT deregistration application, but this can vary depending on the completeness of the application and supporting documents.
Latest News
Contact Stratify for VAT Deregistration Assistance
VAT deregistration is a critical process for businesses that no longer need to be VAT-registered. Stratify provides end-to-end support to ensure a smooth and compliant deregistration process. Contact us today to discuss how we can assist your business with VAT deregistration in the UAE.
