In the United Arab Emirates (UAE), a business may choose to deregister for value-added tax (VAT) for various reasons, as long as those reasons fall within the parameters set by the country’s Federal Tax Authority (FTA). To deregister, a business must cancel its registration with the FTA.

It is important for a company to have a valid reason for deregistering for VAT, as the FTA has the right to approve or reject deregistration applications and may impose penalties for invalid or illegitimate requests.

A business is eligible for VAT deregistration in the UAE if it meets certain conditions set by the FTA, such as when it stops dealing in taxable goods and services, or when its annual turnover of taxable supplies or expenses in the past 12 months falls below the VAT registration threshold of AED 187,500.

A business may also choose to deregister voluntarily if it has not reached the mandatory VAT registration threshold of AED 375,000 in taxable supplies in the past 12 calendar months or if 12 calendar months have passed since it registered for VAT on a voluntary basis. It is recommended to seek the assistance of experienced and qualified tax agents to ensure a successful deregistration process.