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Exit the VAT System Legally—Avoid Unnecessary Penalties and Keep Your Records Clean

HomeServicesVAT Deregistration

VAT deregistration is the formal process of removing your business from the VAT system  when it no longer meets the criteria for VAT registration. 

You must apply for VAT deregistration if: 

  • Your taxable turnover falls below AED 187,500 in the past 12 months 
  • You cease all taxable business activity in the UAE 
  • Your company is liquidated, merged, or shut down 

• You are legally required to submit your deregistration request within 20 business days  of becoming ineligible. Failing to do so can lead to a fixed penalty of AED 1,000,  increasing monthly up to AED 10,000.

GPA’s VAT Deregistration Services

At GPA, we ensure your deregistration process is timely, compliant, and clearly justified to
the FTA—so your business can close or transition without financial or legal complications.

Our Process

Eligibility & Compliance Review

• Confirm that your business:• Has ceased taxable activity OR• Has fallen below the voluntary threshold• Ensure that all VAT returns have been filed and dues cleared• Check for any outstanding penalties or administrative issues

FTA Application via Emara Tax

• Prepare and submit your Deregistration Request• Upload supporting documents (trade license cancellation, liquidation letter, or bankclosure letter)• Explain the business rationale and ensure the FTA is satisfied with your case

Final Return Filing

• File the final VAT return, if due, including any remaining VAT collections or expenses• Reconcile VAT ledgers, input/output records, and bank transactions to close yourbooks cleanly

FTA Communication & Confirmation

• Handle any FTA queries• Track the status of your application• Deliver the VAT Deregistration Certificate once approved

Required Documents

• Trade license (cancelled/expired)
• Final VAT return Details
• Clearance of VAT liability (if any)
• Liquidation/closure evidence (for companies shutting down)
• Bank closure letter or business cessation letter (if applicable)

When to Apply

  • Within 20 business days of eligibility
  • Preferably before license cancellation, but can be done during liquidation process

Why GPA?

  • Expert handling of VAT exit strategy

  • Avoidance of penalties due to late filing

  • Clarity on financial and compliance obligations before closing

  • Fast-track Emara Tax application handling

  • End-to-end guidance, including VAT final return prep

Contact Us Today!

Contact Us Today