When you stop making taxable supplies, or your turnover falls away, you must cancel your VAT registration — and the FTA gives you just 20 business days to apply. SKM International handles deregistration properly: final returns settled, deemed supplies accounted for, and the cancellation filed on time. Chartered accountants, serving the UAE since 2006.
Closing the company entirely, or dealing with VAT registration, Corporate Tax or a penalty?
Deregistration is not just clicking "cancel". The FTA will not approve it until your final returns are filed, your tax is settled, and VAT on any remaining business assets is accounted for. Miss the 20-day window and a monthly penalty starts running.
You must apply to deregister within 20 business days of either ceasing to make taxable supplies, or your taxable supplies falling below the voluntary threshold of AED 187,500 for 12 consecutive months.
Before the FTA approves deregistration, you must file all outstanding VAT returns, settle any unpaid tax, and account for VAT on remaining business assets (a "deemed supply"). Skip a step and the application stalls — while the clock on the late-deregistration penalty keeps ticking.
SKM International handles the whole process: confirming you actually need to deregister, preparing and filing the final return, settling the position, and submitting the cancellation on EmaraTax so it is approved cleanly. If you are closing the company entirely, we tie this in with the wider wind-down.
There is a difference between when you must deregister and when you may — and getting it wrong cuts both ways.
You must apply to deregister if you stop making taxable supplies altogether — for example, you close the business — or if your taxable supplies fall below the voluntary threshold of AED 187,500 over 12 consecutive months. The 20-business-day clock starts from when that happens.
You may apply to deregister if your taxable supplies have dropped below the mandatory AED 375,000 threshold but are still above AED 187,500. Whether that is the right move depends on your input VAT position and where the business is heading — we will tell you honestly whether to deregister or stay registered.
We make sure it is approved the first time — not bounced back for missing steps.
Tell us what has changed and we will confirm whether you must deregister — and handle the final returns and cancellation for you.
You must apply to deregister within 20 business days if you stop making taxable supplies altogether, or if your taxable supplies fall below the voluntary threshold of AED 187,500 over 12 consecutive months. The clock starts from when one of those happens, so it is important to act promptly.
Failing to apply for deregistration on time carries a penalty of AED 1,000 for the first month, with a further AED 1,000 for each month it remains outstanding, capped at AED 10,000 in total. Because it grows month by month, filing as soon as possible is what limits the cost — we can do that for you straight away.
Before deregistration is approved you must file all outstanding VAT returns, settle any unpaid tax, and account for VAT on any business assets you still hold (a deemed supply). The FTA will not cancel your registration until these are done. We handle each step so the application is approved rather than bounced back.
If your taxable supplies have fallen below the mandatory AED 375,000 threshold but are still above AED 187,500, you may apply to deregister voluntarily — it is optional. Whether it is the right move depends on your input VAT position and outlook, so it is worth a quick review before deciding. We will give you a straight answer.
Yes. VAT deregistration is its own process, separate from Corporate Tax deregistration and from the liquidation of the company itself — though they are usually done together as part of closing down. We coordinate all of it so nothing is left open with the FTA when the company is wound up. See our Company Liquidation page for the wider picture.
Yes. We confirm your eligibility, prepare and file the final returns, settle the position, account for any deemed supply on assets, and submit the deregistration on EmaraTax through to approval. You deal with one team from start to finish, and we keep you clear of the late-deregistration penalty.
Mon–Fri 9:00AM–6:30PM | Sat 9:00AM–3:00PM | Office 102, Al Tawhidi Building, Al Mankhool, Dubai UAE