When must a UAE business deregister for VAT?
When it stops making taxable supplies, or when its taxable supplies over 12 months fall below the AED 187,500 voluntary threshold. Article 14 of the Executive Regulation requires the application within 20 business days of either event. A business below the AED 375,000 mandatory threshold may apply, and a voluntary registrant cannot deregister within 12 months of registering.
On this page
What deregistration does not end
Article 21 of the VAT Decree-Law keeps the FTA's right to collect any tax or penalties due. A final return is still required for the last tax period.
Contractors winding down
A contractor finishing its last project may still have retention to invoice. Retention invoiced later is still a taxable supply, so deregistering too early can leave VAT on retention to account for.
How SupaJack Construct helps
Retention outstanding by tranche and invoices by period are visible, so a business can see what taxable supplies remain before applying.
Related tools and guides
See the VAT guide for contractors, the VAT calculator, the payment certificate calculator, the retention calculator, finance and VAT in SupaJack Construct, the answer on whether a payment certificate triggers VAT and the meaning of e-invoicing.
Worked example
A small fit-out company completes its last job in March and makes no further supplies. It must apply to deregister within 20 business days. It still has AED 60,000 of retention to release in December, which will need VAT accounted for.
Questions people ask
How long is there to apply?
20 business days from the event.
Is a final return needed?
Yes, for the last tax period.
Can a voluntary registrant deregister after six months?
No, not within 12 months of registering.