Vat Deregistration Services
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VAT deregistration in the UAE is the official process of cancelling your VAT registration with the Federal Tax Authority (FTA). Businesses that no longer meet VAT registration requirements, have stopped operations, or fall below the mandatory threshold must apply for VAT deregistration within the time frame specified under the UAE VAT Law.
At Catalyst Taxes, we provide complete VAT deregistration services in the UAE, ensuring your application is filed correctly, your liabilities are cleared, and your Tax Registration Number (TRN) is cancelled without penalties or delays.
What is VAT Deregistration in UAE?
VAT deregistration is the process through which a registered business cancels its VAT registration with the FTA. Once approved, the business will no longer be required to charge VAT, file VAT returns, or comply with VAT reporting obligations.
Under the UAE VAT law, deregistration can be:
Voluntary, when a business chooses to cancel its VAT registration after meeting specific conditions.
Mandatory, when a business is legally required to deregister because it no longer qualifies for VAT registration.
The FTA carefully reviews each application. If all conditions are fulfilled and outstanding liabilities are cleared, the TRN will be cancelled. If requirements are not met, the application may be rejected.
When is VAT Deregistration Required?
1. Mandatory Deregistration
A business must apply for VAT deregistration if:
Its taxable supplies fall below AED 375,000 (mandatory registration threshold).
It completely stops making taxable supplies.
The business has permanently closed or liquidated.
Failure to apply for deregistration within 20 business days of becoming eligible can result in administrative penalties under Cabinet Resolution No. 40 of 2017.
2. Voluntary Deregistration
A business may apply for voluntary deregistration if:
It has completed at least 12 months from the date of VAT registration.
Its annual taxable turnover falls below AED 187,500 (voluntary threshold).
It expects that taxable supplies in the next 30 days will not exceed the voluntary threshold.
The business is permanently shutting down operations.
However, businesses should carefully evaluate future plans before applying. If you expect business activity to resume soon, it may be better to retain your TRN and file zero VAT returns instead of cancelling registration.
At Catalyst Taxes, we assess your financial position and future plans before recommending deregistration.
VAT Deregistration for VAT Groups
If businesses are registered as a VAT group, deregistration may occur when:
The group no longer meets the eligibility criteria.
Companies within the group are no longer financially or legally linked.
The FTA determines that group registration may result in tax avoidance.
Each case is reviewed carefully by the FTA before approval.
Reasons Why the FTA May Reject a Deregistration Application
The FTA may refuse your VAT deregistration request if:
Outstanding VAT returns have not been filed.
Due taxes or penalties remain unpaid.
The application is submitted late.
Required documentation is incomplete.
It is essential to ensure that all compliance requirements are fulfilled before applying. A rejected application can delay business closure and increase penalty risks.
Step-by-Step VAT Deregistration Process in UAE
VAT deregistration is completed online through the FTA portal. The process generally includes:
Reviewing eligibility and confirming deregistration grounds.
Clearing all outstanding VAT returns and payments.
Logging into the FTA portal and completing the deregistration form.
Submitting supporting documents (such as liquidation certificate if the company is closed).
Waiting for FTA review and approval.
Initially, the application status may show as “Pre-Approved.” Final approval is granted only after the FTA verifies that all liabilities are settled.
Catalyst Taxes manages this entire process on your behalf to ensure smooth approval.
Important Considerations Before Cancelling VAT
Before proceeding with VAT deregistration, businesses should evaluate:
Future business plans and potential investors.
Ongoing contracts that require VAT compliance.
Risk of penalties for incorrect filing.
Cash flow impact and final tax settlements.
In some situations, maintaining VAT registration and filing zero returns may be more beneficial than cancelling your TRN.
Our experts provide professional advice tailored to your specific business situation.
How Catalyst Taxes Supports Your VAT Deregistration
At Catalyst Taxes, we offer structured and legally compliant VAT deregistration services across the UAE. Our approach includes:
Detailed review of your business turnover and compliance history
Assessment of voluntary vs mandatory deregistration eligibility
Clearance of pending VAT returns and liabilities
Preparation and submission of deregistration application
Follow-up with the FTA until final approval
We also provide complete VAT support services including:
VAT Registration
VAT Filing & Return Submission
VAT Compliance & Internal Review
VAT Training
VAT Advisory & Impact Analysis
Our goal is to protect your business from unnecessary penalties while ensuring a smooth transition out of the VAT system.
Speak to a VAT Expert Today
If you are considering VAT deregistration in the UAE or unsure whether your business qualifies, consult Catalyst Taxes for professional guidance.
Our experts are ready to review your situation and provide practical, compliant solutions tailored to your business needs.
Book your consultation today and ensure your VAT deregistration is handled the right way.
