Key takeaways
- A UAE VAT registrant must apply to the FTA to deregister within 20 Business Days of ceasing Taxable Supplies, or of its 12-month Taxable Supplies falling below the AED 187,500 voluntary threshold with none expected above it in the next 30 days (Articles 17 and 21, Federal Decree-Law No. 8 of 2017; Article 14, Executive Regulation).
- A business below the AED 375,000 mandatory threshold may deregister voluntarily, but not within 12 months of a voluntary registration (Articles 22 and 23).
- UAE VAT deregistration is applied for on the FTA's EmaraTax platform at no charge, and the FTA service card (updated 24 September 2026) gives 30 business days for a decision.
- The final VAT return and any tax due are payable within 28 days of the effective date, and include output VAT on business assets still held, which the law treats as supplied just before deregistration.
- A late UAE VAT deregistration application costs AED 1,000 a month, capped at AED 10,000, under the penalty schedule in force from 14 April 2026.
- Deregistration does not cancel earlier VAT: the FTA can still claim Due Tax and penalties for the registered period (Article 21(3) of the Decree-Law).
When do you have to deregister from VAT in the UAE?
You must apply when your business stops making Taxable Supplies, or when its Taxable Supplies over 12 consecutive months fall below AED 187,500 and you don't expect to pass that figure in the next 30 days. Between AED 187,500 and AED 375,000 you may deregister but aren't required to. Thresholds are as of 13 November 2026.
| Your position | Deregistration | Time limit | Legal basis |
|---|---|---|---|
| You stop making Taxable Supplies | Mandatory | 20 Business Days from the event | Decree-Law Article 21(1)(a); Executive Regulation Article 14(1) |
| 12-month Taxable Supplies below AED 187,500, none expected above it in the next 30 days | Mandatory | 20 Business Days from the event | Decree-Law Articles 21(1)(b) and 17(2); Executive Regulation Articles 8(1) and 14(1) |
| 12-month Taxable Supplies below AED 375,000 | Voluntary | No deadline stated | Decree-Law Article 22; Executive Regulation Article 7(1) |
| Registered voluntarily less than 12 months ago | Not allowed | Wait until 12 months have passed | Decree-Law Article 23 |
Only Taxable Supplies count: exempt supplies are left out, zero-rated supplies stay in (Articles 19 and 44 of the Decree-Law). The 20 Business Days run from the event, not from when you decide to tell the FTA.
How do you deregister from VAT on EmaraTax?
You apply from your taxable person account on EmaraTax, which charges nothing. The FTA estimates 45 minutes for the form and requires a UAE Pass login.
- Log in to EmaraTax with UAE Pass and open the Taxable Person Account.
- Under the VAT title, click "Actions" and choose "De-Register".
- Choose the basis for deregistration and complete the application.
- Upload the documents the FTA lists for that basis (PDF, Excel, Docs, JPG, PNG or JPEG, up to 5 MB each).
- Submit, then answer any request for more documents. The FTA service card allows 30 business days, and 30 more after extra documents.
- The FTA must tell you the effective date within 10 Business Days of deciding (Executive Regulation Article 14(6)).
- File the final VAT return and pay within 28 days of the effective date. The FTA then issues a digital deregistration certificate once the return is approved and all tax and penalties are settled.
What documents does the FTA ask for?
Most bases need the FTA's financial turnover template showing taxable income and expenses from the date of actual registration. The FTA service card lists the rest by basis, as of its 24 September 2026 update.
| Basis for deregistration | Documents the FTA lists |
|---|---|
| Business stopped making taxable supplies, licence cancelled | Licence cancellation certificate, liquidation letter and board resolution; turnover template; natural person declaration for sole establishments |
| Taxable supplies below AED 187,500, or between AED 187,500 and AED 375,000 | Turnover template; signed and stamped company letter confirming the business won't pass the threshold in the next 30 days; natural person declaration for sole establishments |
| Duplicate TRN or branch | The TRN being used, or the head office TRN certificate, with a signed and stamped letter confirming returns will be filed under it |
What goes into the final VAT return, and when is it due?
The final return covers the last tax period up to the effective deregistration date, and it is due with any tax payable within 28 days of that period's end. It must include output VAT on goods and services that form part of your business assets, which the law treats as supplied immediately before deregistration (Decree-Law Article 11(4); Executive Regulation Article 14(8)).
The effective date is normally the last day of the Tax Period in which the conditions were met, or another date the FTA sets (Executive Regulation Article 14(3)). For a voluntary application it is the date you request, otherwise the date you submit (Article 14(5)).
Deemed supply doesn't apply where no input VAT was ever recovered on the item, the supply is exempt, the input VAT was already adjusted under the Capital Assets Scheme, or total output tax on deemed supplies in 12 months stays within AED 2,000 (Article 12; Executive Regulation Article 5).
Say a trading company holds stock and equipment worth AED 200,000 on which it recovered input VAT. At 5%, AED 10,000 of output VAT goes into the final return on top of its normal sales for the last period. Confirm the valuation basis for particular assets with a registered tax agent. This is an illustration, not a client case.
To avoid tracking these dates by hand, use the free UAE compliance calendar.
What are the penalties for deregistering late?
A late application costs AED 1,000 for late submission, repeated on the same date each month up to AED 10,000, and a late final return or late payment adds its own penalties. Source: Cabinet Decision No. 40 of 2017 as amended by Cabinet Decision No. 129 of 2025, effective 14 April 2026, as of 13 November 2026.
| Violation | Penalty (AED) |
|---|---|
| Failing to submit a deregistration application within the legal time limit | 1,000 for late submission and on the same date monthly thereafter, up to 10,000 |
| Failing to submit a VAT return on time | 1,000 the first time; 2,000 for a repeat within 24 months |
| Failing to settle Payable Tax on time | Monthly penalty of 14% per annum on the unpaid tax, for each month or part of a month |
What happens after you deregister from VAT?
After the effective date you stop charging VAT, but the FTA keeps its right to claim Due Tax and penalties for the registered period (Article 21(3); Executive Regulation Article 18). Capital Assets records must be kept for at least 10 years (Article 60(2)).
- Invoices: anyone who issues a tax invoice or receives an amount as tax must pay it to the FTA (Article 65(4)), so VAT charged after the effective date is still payable.
- Re-registration: you must register again if you later meet the requirements (Executive Regulation Article 14(9)).
- Corporate tax: it is a separate registration, so VAT deregistration does not end it.
20 Business Days: the time limit to apply for VAT deregistration once the obligation arises. Source: Cabinet Decision No. 52 of 2017 (VAT Executive Regulation), Article 14(1), checked 13 November 2026.
What most guides don't tell you
- The FTA's own pages disagree on the deadline. The Executive Regulation says 20 Business Days, while the FTA service card states 30 business days. Plan to the shorter figure.
- The old flat AED 10,000 figure is out of date. The Ministry of Finance consolidated text now shows AED 1,000 a month with a cap of AED 10,000 from 14 April 2026. The bigger bill is usually unpaid output VAT on the final return.
- Deemed supply catches businesses that think they have nothing to declare. A company that has stopped trading still owns stock or vehicles, and if input VAT was recovered on them the final return carries output VAT. Work it out before you apply.
- Doing nothing doesn't keep the registration alive. The FTA can deregister a business itself once satisfied the conditions are met (Executive Regulation Articles 14(4) and 14 bis), which only hands it the choice of date.
Which deadlines apply to your company?
Your dates depend on your tax period and the triggering event. Qawi's free calendar of your company's UAE tax and compliance deadlines is personalised from a few questions and comes as a PDF and calendar file: get the UAE compliance calendar.
Frequently asked questions
What is the tax point for VAT in the UAE?
The tax point is the date of supply, which is the earliest of the events in Article 25 of Federal Decree-Law No. 8 of 2017, such as transfer of goods, completion of services, invoicing or payment. For assets held at deregistration, Article 26(3) sets the date of supply at the date of deregistration.
What happens during an FTA VAT audit?
A tax audit is an FTA procedure to inspect your records, data or goods and confirm you have met your obligations. Deregistration doesn't stop an audit, because the FTA keeps its right to claim Due Tax and administrative penalties for the period you were registered.
How do I respond to an FTA clarification request?
Answer each point the FTA raises and send the documents it asks for within the deadline shown in the request. For a deregistration application, the FTA service card says it may take a further 30 business days to respond after you submit the extra documents.
Can I appeal a VAT penalty?
Yes, Article 5 of Cabinet Decision No. 40 of 2017 lets a person object to an administrative penalty under the procedures in Federal Decree-Law No. 28 of 2022 on Tax Procedures. Check the deadline in your penalty notice and the FTA's tax dispute resolution page before you file.
About Qawi · Qawi is a corporate services firm licensed in the Sharjah Media City (SHAMS) free zone, handling company formation, visas and PRO, bookkeeping, VAT and corporate tax for UAE businesses. Guides are researched from FTA, Ministry of Finance and free zone sources. Qawi on LinkedIn
Sources
- Federal Tax Authority, VAT Deregistration service card, page last updated 24 September 2026: EmaraTax steps, documents, processing time, final return timing and deregistration certificate
- Federal Decree-Law No. 8 of 2017 on Value Added Tax, English text as amended (Ministry of Finance, version published July 2025): Articles 11, 12, 17, 19, 21 to 23, 25, 26, 44, 60 and 65
- Cabinet Decision No. 52 of 2017, Executive Regulation of the VAT Decree-Law, English text as amended including Cabinet Decision No. 149 of 2026 (Ministry of Finance): Articles 1, 5, 7, 8, 14 and 18
- Cabinet Decision No. 40 of 2017 on Administrative Penalties and its amendments, consolidated 14 November 2025 (Ministry of Finance): Article 5 and Table 1, as amended by Cabinet Decision No. 129 of 2025 from 14 April 2026
- Federal Tax Authority, Tax Dispute Resolution
Last checked: 13 November 2026
This is general information, not tax or legal advice for your specific situation.