Where taxable supplies have ceased or turnover has fallen below the threshold, VAT deregistration is neither optional nor automatic. Twenty business days are allowed to apply, and missing the window attracts an AED 1,000 penalty that rises monthly to AED 10,000. Cressford Chartered Accountants manages the complete exit: eligibility confirmation, outstanding and final returns, the deemed-supply calculation on retained assets, and EmaraTax submission, so the business leaves the VAT system cleanly, on time and penalty-free.
Describe your situation and your deregistration position, and your deadline, is confirmed within one working day. Your details remain confidential.
No obligation. Your details remain confidential.
Deregistration is determined by taxable turnover and whether the business continues to trade. Three situations apply:
The 20 business days run from the date eligibility arose, when taxable supplies ceased or turnover crossed below the threshold, not from when the matter is attended to.
Missing the window attracts AED 1,000, then a further AED 1,000 for each month that passes, capped at AED 10,000.
Until deregistration is formally approved, any returns that fall due must still be filed, even where trading has ceased.
The most common, and most expensive, error, because the penalty grows monthly.
VAT is due on stock and assets retained after deregistration where input VAT was recovered on them; omission from the final return invites an FTA correction.
Deregistration is not permitted within 12 months of a voluntary registration.
Deregistration takes effect from the end of the tax period in which the conditions were met; an incorrect date stalls the application.
It does not. Deregistration is a separate FTA step, and the FTA conducts post-exit reviews.
The VAT position is closed out properly, final return, deemed supply, records, so nothing resurfaces in a post-exit audit months later.
Work proceeds from the true triggering date and the 20-business-day clock, so the penalty never begins to run.
Where the company is winding down, VAT deregistration is aligned with licence cancellation and the other tax exits so nothing is left outstanding.
A fixed fee agreed in advance, handled by senior professionals. Office 2514, DAMAC Smart Heights, Barsha Heights (Tecom), Dubai. In person or fully remotely.
When taxable supplies have ceased entirely, or when supplies over the last 12 months fell below AED 187,500. In both cases the application must be made within 20 business days of eligibility arising.
AED 1,000 on missing the window, plus a further AED 1,000 for each subsequent month, capped at AED 10,000.
Yes, deregistration is optional in that band: supplies are below the mandatory threshold but above the voluntary one, so the business may remain registered or exit.
No. A voluntary registration cannot be deregistered within 12 months of registering.
The final return closes the VAT account and must include deemed-supply VAT on stock and assets retained at deregistration where input VAT was recovered on them.
No. VAT deregistration is a separate application to the FTA, and returns continue to fall due until the FTA formally approves it. The FTA also conducts post-exit reviews.
VAT records must be retained for at least five years, and remain examinable in a post-exit review.
Your deadline confirmed and the deregistration handled end to end, at a fixed fee, without penalties.