When Can a UAE Business Deregister From VAT?
October 23, 2026
Per the official tax.gov.ae guidance, a VAT-registered UAE business can generally apply for deregistration if it stops making taxable supplies entirely, or if its taxable supplies fall below the AED 187,500 voluntary registration threshold (with specific conditions depending on which threshold originally applied).
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- The business has stopped making taxable supplies and does not expect to make any within a specific future period, or
- Taxable supplies over the previous 12 months fall below the relevant threshold, with no expectation of exceeding it again soon
Why This Isn't Automatic
Deregistration generally requires an application to the FTA rather than happening automatically once supplies drop — a business continues to have VAT obligations (filing returns, charging VAT) until deregistration is formally approved, so timing the application appropriately matters.
Frequently Asked Questions
Can a UAE business deregister from VAT?
Yes, generally if it stops making taxable supplies or falls below the relevant registration threshold, per tax.gov.ae guidance.
Does deregistration happen automatically?
No — it generally requires an application to the FTA; obligations continue until deregistration is formally approved.
What threshold is relevant for deregistration?
Generally tied to the AED 187,500 voluntary threshold, with specific conditions depending on the business's registration history.
What happens if a business doesn't deregister despite no longer qualifying?
It likely continues to have ongoing VAT compliance obligations until deregistration is formally processed.