VAT deregistration is mandatory in several situations — and the FTA gives you only 20 business days to apply. This is one of the most missed compliance steps in the UAE.
When you must deregister
- You stop making taxable supplies
- Your taxable supplies fall below the AED 187,500 voluntary threshold for 12 consecutive months
- Your business is closed, liquidated or sold
The 20-day deadline
You must submit the deregistration application within 20 business days of the event that triggers deregistration. Missing this window triggers an AED 10,000 administrative penalty.
Final VAT return and clearance
- File a final VAT return covering the period up to the deregistration date
- Settle any outstanding VAT liability and administrative penalties
- Receive the FTA's confirmation of deregistration
Get compliant today
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Frequently asked questions
Quick answers to common UAE vat questions.
This article is for general guidance only and reflects FTA rules as of June 2026. Always confirm your specific position with a qualified UAE tax advisor.