UAE VAT Deregistration and Cancellation Guide 2026
UAE businesses registered for VAT that fall below the threshold or cease UAE activities must deregister from VAT. Failing to deregister when required can lead to FTA penalties. This guide covers UAE VAT deregistration for 2026.
In this guide:
When Must You Deregister from UAE VAT?
- Mandatory deregistration: if taxable supplies (revenue from VAT-applicable goods and services) drop below AED 187,500/year AND are unlikely to exceed AED 375,000 in the next 30 days; must apply for deregistration
- Business cessation: if the business stops making taxable supplies entirely (company closed, trading ceased); must deregister
- Voluntary deregistration: if taxable supplies exceed AED 187,500 but are below AED 375,000; can voluntarily deregister; useful if compliance burden exceeds benefit of VAT registration
UAE VAT Deregistration Process
- Log in to EmaraTax (FTA portal)
- Navigate to VAT → Deregistration → apply
- Provide deregistration reason: revenue below threshold; business ceased; voluntary
- Submit final VAT return: cover the period up to deregistration date; pay any outstanding VAT liability
- Account for assets on hand: if you have goods/assets that had input VAT claimed, output VAT may be due on them at deregistration
- FTA review: FTA reviews the deregistration application; may ask for supporting documents
- Certificate issued: UAE VAT deregistration certificate issued; VAT number is cancelled
UAE VAT Deregistration Timeline
- Apply within 20 business days of the date on which deregistration conditions are met
- Late deregistration penalty: AED 10,000 fixed penalty for failure to apply for deregistration within the required timeframe
- FTA processing time: typically 20-30 business days after receiving complete application
Asset Output VAT at Deregistration
- Business assets: when deregistering from VAT, if you hold business assets on which you claimed input VAT, you must account for output VAT on the market value of those assets as at deregistration date
- Example: purchased laptop for AED 5,000 + AED 250 VAT (claimed input); at deregistration laptop value AED 2,000; output VAT due = AED 100
- Goods for sale: stock of goods held for sale at deregistration; output VAT on market value
- Real estate: complex; seek UAE VAT specialist advice if property with claimed input VAT is involved at deregistration