VAT Deregistration Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
VAT Deregistration Services in the UAE
Clean exit from your VAT obligations, without unresolved liabilities coming back to bite you later.
VAT deregistration is the formal process of cancelling a business’s VAT registration with the Federal Tax Authority. It’s required when a business ceases to make taxable supplies or when taxable turnover falls below the deregistration threshold. Farahat & Co. provides end-to-end VAT deregistration services, managing eligibility assessment, documentation, application submission, and FTA follow-up.
- Registered FTA tax agent, submitting and managing your application directly through EmaraTax
- Full compliance check built in, confirming outstanding returns and liabilities are settled before submission
- Tax group expertise, alongside standard individual entity deregistration
Deregistration involves more than submitting a form, it requires a thorough review of compliance status, outstanding returns, and documentation to ensure the application is approved without delays or penalties.
Our Specialists In VAT Deregistration Services
Romany Shayb
Senior VAT Consultant
Ahmad Ali Jourieh
Senior VAT Consultant
Nayomi Jayaweera
VAT Consultant
As a Trusted VAT Consultancy in the UAE, Farahat & Co. Offers the Following VAT Services:
VAT Deregistration Thresholds and Rules
Businesses must apply for deregistration when any of the following conditions are met:
- Taxable supplies over the previous 12 consecutive months fall below AED 187,500 (mandatory deregistration)
- Taxable supplies over the past 12 months fall below the mandatory registration threshold of AED 375,000, while still above AED 187,500 (voluntary deregistration)
- The business has ceased making taxable supplies entirely
Key requirements:
- Application timing: the deregistration application must be submitted within 20 business days of the conditions being met
- Effective date: deregistration takes effect from the last day of the tax period in which the conditions were met, or an alternative date determined by the FTA
- Pre-conditions: all outstanding VAT returns must be filed, and all outstanding tax and administrative penalties settled, before deregistration can be approved
How to Deregister for VAT in the UAE
VAT deregistration is completed through the FTA’s EmaraTax portal and follows a structured process.
- Submit the deregistration application: the business owner or an authorised representative logs in to EmaraTax and submits the application with supporting documents.
- Document submission: supporting documents typically include financial statements, purchase and sales invoices, and recent VAT returns, giving the FTA the information needed to verify the deregistration conditions.
- FTA review: the FTA reviews the application and supporting documents, approving the request where the submission is complete and conditions are met, and may request additional information where needed.
- Deregistration certificate: once approved, the FTA issues a certificate confirming the business is no longer VAT registered. VAT returns must continue to be filed on time until the final return is processed and deregistration is confirmed.
VAT Deregistration for Tax Groups
For VAT groups, deregistration follows the same general steps with additional specific conditions. The FTA may approve group deregistration where the registered entity no longer meets the criteria to be treated as a VAT group, where the companies in the group are no longer financially associated, or where the FTA determines that continued group registration may facilitate tax evasion.
Penalties for Late VAT Deregistration
If a business fails to submit its deregistration application within the 20-business-day deadline, the FTA applies a penalty of AED 1,000 for the initial delay, accruing monthly up to a maximum of AED 10,000. Submitting the application promptly once the deregistration conditions are met is the most effective way to avoid this exposure entirely.
How Farahat & Co. Can Help with VAT Deregistration
Farahat & Co. manages the full deregistration process on your behalf:
- Eligibility assessment: we review your turnover, financial records, and business activity to confirm whether mandatory or voluntary deregistration applies, and advise on the appropriate timing.
- Documentation and preparation: we compile and verify all required documentation, ensuring accuracy and completeness before submission to minimise the risk of FTA queries or rejection.
- Application submission and follow-up: we submit the application through EmaraTax and manage all FTA communication throughout the review process.
- Final compliance check: before the process concludes, we confirm all outstanding returns have been filed, all liabilities settled, and deregistration completed cleanly.
