Applying for VAT deregistration in the UAE is not simply a matter of logging into EmaraTax and clicking a button. The FTA requires a specific set of documents — and what you need to submit depends on why you're deregistering.
The most common reason applications are rejected or delayed is missing, incorrect, or poorly prepared documents. This guide covers every document the FTA expects, what each one must contain, and the most common mistakes that cause rejections.
When Can You Apply for VAT Deregistration?
Before preparing any documents, you need to identify which deregistration basis applies to your situation. The FTA recognises the following grounds:
You must deregister within 20 business days if your taxable supplies have fallen below the voluntary threshold (AED 187,500) and you do not expect to exceed it in the next 12 months — or if you have completely ceased making taxable supplies.
You may apply if your taxable supplies have fallen below the mandatory threshold (AED 375,000) but are still above the voluntary threshold (AED 187,500). At least 12 months must have passed since your original registration date.
The most common scenario handled by Fastlane is deregistration following license cancellation — where the business has shut down, the trade license has been cancelled, and the FTA registration needs to be formally closed.
The Core Documents Required in All Scenarios
Regardless of your deregistration basis, the FTA expects the following two documents in every application. These are non-negotiable and consistently the most problematic to prepare correctly.
Financial Turnover Declaration (FTA Template)
This is the most scrutinised document in any deregistration application. It is a signed and stamped letter showing your taxable income and expenses from your VAT registration date to the present — presented in the FTA's required format.
The document must show figures broken down monthly (for the detailed version) and also summarised annually. The FTA uses these figures to validate whether you genuinely fall below the deregistration threshold.
All amounts in the turnover declaration must be the taxable value before VAT — not the total including 5% VAT. The FTA compares these figures against the AED 375,000 mandatory threshold and AED 187,500 voluntary threshold, which are both based on taxable turnover ex-VAT. Submitting VAT-inclusive figures is one of the most common reasons applications are sent back.
The declaration must be signed and stamped by the company's authorised signatory. An unsigned or unstamped letter is rejected.
| Month / Year | Standard Rate Sales 5% (AED) | Zero Rated Sales 0% (AED) | Sales Out of Scope (AED) | Taxable Expenses 5% (AED) |
|---|---|---|---|---|
| Sep 2024 | — | — | — | 50.00 |
| Oct 2024 | — | — | — | 253.38 |
| Nov 2024 | — | — | — | 152.00 |
| Dec 2024 | — | — | — | 393.48 |
| Jan 2025 | 130,608.00 | — | — | 130,705.32 |
| Feb 2025 | — | — | — | 254.00 |
| … | — | — | — | — |
| Total (Annual) | 130,608.00 | — | — | 150,306.77 |
Format based on actual FTA-submitted turnover declarations prepared by Fastlane. All amounts are taxable values before VAT.
Pledge Letter — No Taxable Supplies in the Next 12 Months
This is a formal declaration on company letterhead addressed to the Federal Tax Authority. It confirms two things:
- The company has ceased making taxable supplies
- The company does not expect to make any taxable supplies in the next 12 months (or ever again, if the entity is dissolved)
It must be signed and stamped by the authorised signatory and addressed directly to the FTA.
The pledge letter should also explicitly confirm the trade license cancellation date and state that the business has permanently ceased operations. The FTA cross-references this against the license cancellation records.
Undertaking Letter — No Taxable Supplies in the Next 30 Days
Separate from the 12-month pledge, the FTA also requires a short-form undertaking confirming that the business will not make taxable supplies in the next 30 days. This is typically a brief paragraph on company letterhead, signed and stamped.
Some practitioners combine this with the 12-month pledge letter into a single document — which the FTA generally accepts, provided both timeframes are explicitly addressed.
Additional Documents by Deregistration Scenario
Beyond the core three documents above, the FTA requires additional evidence depending on your specific situation. Select your scenario:
For businesses whose trade license has been officially cancelled and operations have permanently ceased.
- Required Cancelled trade license copy (showing cancellation date)
- Required Liquidation letter (if company was formally liquidated)
- Required Board resolution confirming cessation of business
- Required Latest financial statements (Trial Balance / P&L / Balance Sheet — audited or unaudited)
- Required Financial Turnover Template (taxable income & expenses from registration date)
- Required Pledge letter (no taxable supplies in next 12 months)
- Required Undertaking letter (no taxable supplies in next 30 days)
- Supporting Letter from Ministry of Labour confirming number of employees (if applicable)
- Supporting Sales invoices, LPOs, contracts backing up the turnover figures
For businesses where the license or company has been sold or transferred to a new owner.
- Required Old and amended sales contract or license
- Required Amended company set-up contract reflecting the new ownership
- Required Financial Turnover Template (from registration date)
- Required Letter from Ministry of Labour confirming employee status
- Required Pledge / undertaking letters
For businesses still operating but whose taxable turnover has fallen below the voluntary threshold (AED 187,500).
- Required Financial Turnover Template (from registration date)
- Required Latest financial statements
- Required Official declaration on company letterhead confirming turnover will not exceed threshold in next 30 days
- Note Minimum 12 months must have passed since original VAT registration
For businesses whose supplies are entirely outside UAE VAT scope or are exempt from VAT.
- Required Financial Turnover Template
- Required Latest financial statements
- Required Signed and sealed letter acknowledging no business activity within UAE
- Required Business itinerary and suppliers/importers country chart (showing operations are outside UAE)
- Required Sample invoices demonstrating the nature of supplies
For a natural person (sole trader) who has ceased business activities.
- Required Proof of cessation of business activities
- Required Financial Turnover Template (from registration date)
- Required Undertaking letter: no taxable supplies in the next 30 days
Special administrative cases handled differently by the FTA.
- Duplicate TRN: State both TRN numbers; provide an official stamped letter confirming that all returns will be filed under one specified TRN
- Branch deregistration: TRN certificate of head office; stamped letter confirming all returns are filed under the parent entity TRN
- Individual institution: Official letter stating all individual institutions are registered under VAT with their respective TRNs
Full Document Checklist at a Glance
| Document | Licence Cancelled | Below Threshold | Out of Scope | Sold/Transferred |
|---|---|---|---|---|
| Financial Turnover Template | ✓ | ✓ | ✓ | ✓ |
| 12-Month Pledge Letter | ✓ | ✓ | ✓ | ✓ |
| 30-Day Undertaking Letter | ✓ | ✓ | ✓ | ✓ |
| Cancelled Trade Licence Copy | ✓ | — | — | — |
| Liquidation Letter | ✓ | — | — | — |
| Board Resolution | ✓ | — | — | — |
| Latest Financial Statements | ✓ | ✓ | ✓ | — |
| Supporting Invoices / LPOs / Contracts | ✓ | ✓ | ✓ | ✓ |
| Sales / Transfer Contract | — | — | — | ✓ |
| Country Chart / Business Itinerary | — | — | ✓ | — |
Want Fastlane to Prepare Every Document for You?
We handle the entire VAT deregistration process — from drafting the turnover declaration and pledge letters to submitting on EmaraTax and tracking FTA approval.
How to Submit on EmaraTax
Once your documents are ready, the deregistration application is submitted through the EmaraTax portal. Here's the process:
Log in to EmaraTax
Access your account at tax.gov.ae using your registered credentials. Navigate to your VAT registration profile.
Select "Deregister for VAT"
Under your VAT registration, choose the deregistration option and select your basis — e.g. "No longer making taxable supplies" or "Below threshold".
Complete the application form
Fill in the required fields including the date you stopped making taxable supplies and supporting information about your business status.
Upload all required documents
Attach the turnover declaration, pledge letter, undertaking, and any scenario-specific documents. The portal will prompt you for the documents relevant to your selected basis.
Submit and track
Submit the application and monitor the EmaraTax portal for the FTA's response. The FTA typically responds within 20 business days. If documents are rejected, you'll receive a notification with the reason.
The FTA will not approve a deregistration application if there are outstanding VAT returns or unpaid VAT liabilities on your account. Ensure all returns are filed and any VAT due is settled before submitting your deregistration application.
What Happens If You Don't Deregister?
Remaining VAT registered after you've ceased trading — or after your license is cancelled — is not a harmless oversight. The consequences include:
- Ongoing obligation to file quarterly VAT returns — even with nil activity
- AED 1,000 penalty for the first late VAT return, AED 2,000 for each subsequent late return within 24 months
- FTA penalties for failure to deregister when mandatory deregistration criteria are met
- Complications when directors or shareholders apply for new licenses in the UAE — active tax liabilities can surface during due diligence
For free zone companies specifically, the free zone authority's license cancellation does not automatically trigger VAT deregistration. The FTA registration is separate and must be closed independently.
Frequently Asked Questions
Nithin Pathak — FTA-Registered Tax Agent
Nithin is the founder of Fastlane Management Consultancy, an FTA-registered Tax Agent and MoE-registered Auditor based in Dubai. He has processed dozens of UAE VAT deregistration cases across free zones and mainland, including post-liquidation and threshold-based applications. The document formats and checklists in this guide are based on real FTA-submitted cases handled by Fastlane.