Expert VAT Deregistration Service in Dubai,UAE - Keep Your Business Compliant
Looking to Cancel VAT Registration in UAE? Our VAT Deregistration Service in Dubai,UAE helps businesses smoothly complete the process in compliance with regulations set by the Federal Tax Authority (FTA). If your business no longer meets the mandatory VAT registration threshold, has ceased operations, experienced a drop in turnover, or undergone structural changes, applying for VAT deregistration becomes a legal requirement under UAE VAT law.
At Everest Chartered Accountants LLC | Everest Accounting & Tax Advisory LLC, we simplify the entire VAT deregistration process to ensure full compliance with FTA regulations while helping businesses avoid penalties and fines. Our experienced team provides step-by-step guidance, manages documentation, and handles the application process to ensure a smooth and hassle-free VAT deregistration experience for your business.
What is VAT Deregistration in UAE?
VAT deregistration in Dubai,UAE is the formal process of cancelling a company’s VAT registration with the Federal Tax Authority (FTA). This step is required when a business no longer meets VAT eligibility criteria, such as:
Turnover falling below the mandatory threshold.
Closure of business operations.
Structural changes or sale of the business.
Failure to comply with VAT deregistration requirements can lead to penalties, fines, and legal complications.
Types of VAT Deregistration in UAE
Mandatory VAT Deregistration
A business must apply for mandatory VAT deregistration if:
- It stops selling taxable goods or services.
- Annual turnover or taxable purchases over the past 12 months fall below AED 187,500
Late application (beyond 20 business days) can lead to fines starting from AED 10,000.
Voluntary VAT Deregistration
Businesses may voluntarily deregister if:
- Annual turnover is less than AED 375,000 but above AED 187,500.
- The company wishes to cancel VAT registration even if operations continue.
VAT Deregistration for Groups
VAT deregistration for tax groups is applicable when:
- The business no longer meets tax group requirements.
- There is no economic, financial, or regulatory association among group members.
- Tax group structure could lead to tax evasion or significantly reduce tax payments.
How to Cancel VAT Registration in UAE
The VAT deregistration process involves a few crucial steps:
Step 1: Log in to the Emara Tax Portal
- Access your account or register as a new user.
- Recover your password if required
Step 2: Initiate VAT Deregistration
- Navigate to the VAT section and select “Deregister”.
- Update bank details if necessary.
Step 3: Provide Justification & Supporting Documents
- Select the reason for deregistration.
- Enter effective dates, turnover, taxable income, and expenses.
Step 4: Submit & Review Application
- Verify all submitted information.
- FTA will review tax return status and check for outstanding liabilities.
Step 5: Receive Confirmation
- VAT number will be officially cancelled.
- Additional documents may be requested by FTA for verification.
Documents Required for VAT Deregistration in UAE
Businesses typically need to submit the following:
Revoked trade license copy.
Letter of liquidation or board resolution confirming closure.
Latest audited or unaudited financial statements (P&L, balance sheet, trial balance).
Ministry of Labor letter regarding employee count.
Updated sales agreements or licensing documents.
Supplier and importer details.
Formal declaration of business closure (if required).
Proof of settlement of outstanding tax payments.
Common Mistakes to Avoid
To prevent fines or delays, avoid these common errors:
Unpaid Tax Liabilities – Clear all VAT dues before deregistration.
Ignoring Trade License Cancellation – Ensure government-issued licenses are cancelled.
Non-compliance with Labor Laws – Settle employee wages, benefits, and visas.
Incomplete Bank Account Closure – Close corporate accounts and clear debts.
Impact of VAT Deregistration in UAE
No VAT Charges – Businesses cannot charge VAT on sales but cannot reclaim VAT on purchases.
Reduced Compliance Burden – Filing VAT returns is no longer required.
Financial Planning Adjustments – Cash flow and pricing strategies may need revision.
Why Choose Everest Chartered Accountants LLC | Everest Accounting & Tax Advisory LLC for VAT Deregistration
Navigating VAT deregistration in UAE can be complex. Our team provides:
Book a ConsultationEligibility evaluation for mandatory and voluntary VAT deregistration.
Document preparation and submission on EmaraTax portal.
Handling VAT returns and penalty settlements.
Efficient liaison with FTA to ensure timely approval.
With Everest Chartered Accountants LLC | Everest Accounting & Tax Advisory LLC, you save time, avoid errors, and remain fully compliant.
VAT Deregistration Services in UAE
We offer end-to-end VAT deregistration services tailored to your business needs:
Mandatory and voluntary VAT deregistration support.
Tax group deregistration assistance.
Final VAT return preparation and submission.
FTA compliance and follow-up support.
Penalty resolution and document management.
FAQ
Questions You're Probably Asking
If you’ve made it this far, you’re either very interested or have questions. Here are a few frequently asked questions.
Still looking for answers?
What happens if I don’t apply for VAT deregistration on time?
Late application can lead to fines starting from AED 10,000 and additional penalties.
Can I deregister VAT if my business is still operating?
Yes, under voluntary deregistration if turnover criteria are met.
Who handles VAT deregistration if I sell my business?
The new owner or seller can apply, depending on the sale agreement.
Do I need to file a final VAT return?
Yes, final VAT returns must be submitted covering all taxable activity until deregistration.
Can I re-register for VAT later?
Yes, a new VAT number can be obtained after deregistration if needed.
How long does FTA take to process deregistration?
Typically, approvals take a few days to a few weeks depending on the complexity of your case.
Do I need to settle all VAT dues before applying?
Yes, all outstanding VAT liabilities must be cleared before deregistration.
What documents are required for VAT deregistration?
Trade license cancellation, financial statements, liquidation letter, board resolution, and proof of VAT dues settlement.
Contact us
Ready to start VAT Deregistration services in Dubai?
Contact Everest Chartered Accountants LLC | Everest Accounting & Tax Advisory LLC today for a free consultation with our certified internal auditors.
Office 605, Silver Tower, Business Bay, Dubai, UAE