VAT Deregistration

Stay Compliant with Timely & Proper VAT Deregistration

In certain cases, businesses in the UAE are required—or eligible—to deregister from VAT with the Federal Tax Authority (FTA). Whether your business has ceased operations, no longer meets the VAT threshold, or is restructuring, Hisab Accountants & Tax Consultants provides expert VAT deregistration services to ensure the process is carried out correctly and in full compliance with UAE tax laws.

We help you avoid costly penalties, ensure accurate final filings, and complete the deregistration process efficiently

What is VAT Deregistration?

VAT Deregistration is the process of canceling your company’s VAT registration with the FTA. It is required when a business no longer meets the mandatory or voluntary registration threshold, or has closed, merged, or restructured.

All businesses must apply for deregistration within 20 business days from the date of eligibility. Failure to do so may result in a fine of AED 10,000.

When Should You Deregister for VAT?

Business Closure or Liquidation

If your company has ceased trading permanently or is being liquidated.

Revenue Falls Below Mandatory Threshold

If your taxable turnover has dropped below AED 375,000 annually and you no longer qualify for mandatory VAT registration.

Revenue Falls Below Voluntary Threshold

If your revenue consistently remains below AED 187,500 and you had voluntarily registered for VAT.

Business Restructuring

In cases of mergers, ownership changes, or legal restructuring, deregistration might be required before re-registering the new entity

Types of VAT Deregistration

There are two types of VAT deregistration services. Companies will choose the appropriate category based on their specific reasons for deregistration. Following are the VAT deregistration categories:

Mandatory VAT Deregistration: A taxable person must apply for VAT deregistration within 30 days if any of the following conditions apply:

If the business no longer carries out any economic activities.
If the business has ceased making taxable supplies.
If they are no longer considered a legal entity (e.g., the company has been closed).

Voluntary VAT Deregistration: A taxpayer may choose to apply for VAT deregistration under the following circumstances:

If its annual turnover remains below AED 187,500, even after making taxable supplies.
If the company has permanently closed.

If a business in the UAE doesn’t apply for VAT de-registration within 20 business days after becoming eligible, they will face a penalty of AED 10,000. It’s important for businesses to adhere to these timelines to avoid unnecessary fines and complications.

Why Choose Hisab Accountants for VAT Deregistration?

Expert VAT Consultants
Our team is highly experienced in UAE VAT laws and FTA procedures.
Thorough Review & Advisory
We ensure your deregistration is compliant, accurate, and backed by proper documentation.
Timely Process Handling
Avoid late submission fines with our prompt and professional support.
Complete VAT Solutions
From registration to return filing and deregistration, we provide end-to-end VAT services

Let's discuss your project

Office Address

Harmain Building (SBK Real Estate Building - Office #52 - near Emirates Gas - Ajman Industrial 2 - Ajman

Phone Numbers

+971 52 278 6001

Email Addresses

Info@hisabtax.com