IncHub Group · Financial Services

VAT Deregistration

Simplify your UAE VAT deregistration with expert support—ensure timely filing, avoid penalties, and stay fully compliant with FTA regulations

Check your Eligibility Get in Touch

Why choose Inchub ?

Ceasing Business Operations

If a business ceases its trading activities or closes down, it may choose to deregister for VAT.

Below Threshold Turnover

If a business’s taxable turnover falls below the mandatory registration threshold, it may qualify for deregistration.

Change in Business Structure

Changes in the legal structure of a business, such as mergers, demergers, or conversions, may trigger the need for VAT deregistration.

Change in Ownership

In cases where there is a change in ownership that results in a new legal entity, the existing entity may deregister for VAT.

Selling or Transferring a Business

When selling or transferring a business as a going concern, VAT deregistration for the seller may be necessary.

VAT Deregistration Process

VAT deregistration is a formal process that businesses should approach with diligence, ensuring all necessary steps are followed to comply with tax regulations and avoid potential issues.

VAT (Value Added Tax)deregistration is a formal process by which a business voluntarily cancels its VAT registration with the tax authorities. This can occur for various reasons, such as ceasing trading activities, changes in business structure, or if the business’s taxable turnover falls below the mandatory registration threshold. Additionally, businesses in Dubai, UAE, can rely on expert assistance for VAT Accounting & Audit, ensuring compliance throughout the deregistration process. Trust our seasoned professionals for comprehensive VAT solutions tailored to your needs. Here’s an overview of the VAT deregistration process

FAQs

What is VAT deregistration in the UAE?
VAT deregistration is the process of canceling your VAT registration with the Federal Tax Authority (FTA) when your business no longer meets the eligibility criteria or stops making taxable supplies.
When is VAT deregistration mandatory in the UAE?
VAT deregistration is mandatory if your taxable turnover falls below AED 187,500 or if your business stops making taxable supplies. You must apply within 20 business days of meeting these conditions.
Can I voluntarily deregister for VAT in the UAE?
Yes, you can apply for voluntary VAT deregistration if your turnover is below AED 375,000 but above AED 187,500, and you no longer wish to remain VAT registered.
What happens if I don’t apply for VAT deregistration on time?
Failure to apply within the required timeframe can result in penalties starting from AED 1,000 per month, up to a maximum of AED 10,000, along with ongoing compliance obligations.
Read More