Created with
Quick answer
When you deregister for VAT, the FTA needs a Turnover Declaration (on company letterhead, signed and stamped) showing your turnover for the relevant years. The catch: the portal cross-checks that declaration against your Corporate Tax and VAT returns — and if the figures don’t line up, an automated mismatch flag can trigger and delay deregistration. So if your company filed NIL Corporate Tax returns because it was inactive, your VAT turnover declaration should show 0.00 across the same years. Consistency between what you reported for CT and what you declare for VAT is what clears the portal.
Most VAT deregistrations don’t fail on the big things — they stall on a single inconsistency. The FTA’s systems reconcile the numbers you declare across Corporate Tax and VAT, and when a deregistration turnover declaration contradicts what you already filed, the portal notices. The fix is simple once you know it: make the figures agree.
The document
What the turnover declaration is
When you apply to deregister for VAT, the FTA asks for a Turnover Declaration — a letter, on your company letterhead, signed and stamped, stating your turnover for the relevant period (typically the last few years and the current year to date). It supports the reason for deregistration — for example, that the business has ceased or that turnover fell below the threshold. A scanned signature and stamp are generally accepted; you don’t need to produce a brand-new physical stamp just for this.
The cross-check
Why the FTA portal flags a mismatch
Here’s the part that catches people out. The FTA doesn’t read your turnover declaration in isolation — its systems compare it against your filed Corporate Tax returns and VAT returns. If those sources disagree, an automated review flag can trigger, and your deregistration waits while the contradiction is examined.
The classic mismatch
A company files NIL Corporate Tax returns (because it was inactive) — but then submits a VAT turnover declaration showing some other figure, or leaves a year out. To the portal, that’s a contradiction: CT says nothing happened, VAT says something did. The system flags it, and a routine deregistration turns into a query.
The rule
Make the declaration match what you filed
The principle is consistency. Your turnover declaration should reflect exactly the position you’ve already reported:
- Inactive / dormant company that filed NIL Corporate Tax returns → declare 0.00 turnover for VAT across the same years (e.g. the prior two years and the current year to the deregistration date).
- Active company → declare the actual turnover, matching the revenue in your CT returns and the supplies in your VAT returns.
Cover every relevant year — don’t leave a gap that the portal reads as missing data. If CT and VAT tell the same story, there’s nothing for the system to flag.
The CT side
Bonus: how Corporate Tax deregistration actually runs
While you’re deregistering, it helps to know Corporate Tax deregistration is a two-step process:
- Apply for CT deregistration using the licence cancellation certificate. The FTA reviews and gives an initial approval.
- Once the FTA enables the final return, you file the final Corporate Tax return. When that’s filed, deregistration completes and the FTA releases the deregistration certificate within 1–2 months.
That final return is another place consistency matters — the revenue you report there should tie back to the same turnover story your VAT declaration tells. (If your free-zone letter arrived late and you’re worried about timing penalties, see the cancellation-date vs letter-date gap.)
Before you submit
A quick pre-submission check
- Does the turnover declaration cover all relevant years, including the current year to the cessation date?
- Do the figures match your CT returns (NIL → 0.00; active → actual)?
- Do they match your VAT returns for the same periods?
- Is it on letterhead, signed and stamped (a scan is fine)?
Deregistering? We’ll keep your CT and VAT numbers in step.
We prepare your turnover declaration to match your filed Corporate Tax and VAT position, and handle both VAT (AED 499) and Corporate Tax (AED 399) deregistration — so the portal clears without a mismatch flag.
Related reading
Free-zone cancellation date vs clearance-letter date →Corporate tax deregistration: process, penalties & deadlines →Related Fastlane services
FAQ
What is a turnover declaration for VAT deregistration?
It is a letter, on your company letterhead and signed and stamped, stating your turnover for the relevant years, which the FTA requires when you apply to deregister for VAT. It supports the reason for deregistration — such as the business ceasing or turnover falling below the threshold. A scanned signature and stamp are generally accepted.
Why must my VAT turnover declaration match my Corporate Tax returns?
Because the FTA’s systems cross-check the declaration against your filed Corporate Tax and VAT returns. If the figures disagree — for example NIL Corporate Tax returns but a different figure on the VAT turnover declaration — an automated review flag can trigger and delay deregistration. Consistent figures across CT and VAT are what clear the portal.
My company was inactive and filed NIL corporate tax returns — what turnover do I declare for VAT?
0.00, across the same years your Corporate Tax returns covered, including the current year up to the deregistration date. Declaring anything other than 0.00, or leaving a year out, contradicts the NIL Corporate Tax position and can trigger a system mismatch flag. Keep the VAT declaration consistent with what you filed for CT.
Does the FTA cross-check Corporate Tax and VAT during deregistration?
In practice, yes — the FTA’s systems reconcile the turnover you declare for VAT against your Corporate Tax and VAT returns. Inconsistencies between the two can trigger an automated review that holds up deregistration until the discrepancy is explained, so it is important the figures tell the same story.
What are the two steps of corporate tax deregistration?
First, you apply for deregistration using the licence cancellation certificate, and the FTA gives an initial approval. Second, once the FTA enables the final return, you file the final Corporate Tax return — after which deregistration completes and the FTA releases the deregistration certificate, typically within one to two months.
Do I need a physical stamp on the turnover declaration?
Usually not a new one — a scanned version of your signature and company stamp on the letterhead is generally accepted for the turnover declaration. You do not need to create a brand-new physical stamp solely for this document; a clear scanned stamp and signature are normally sufficient.
General guidance on UAE VAT and Corporate Tax deregistration and the turnover declaration, current as of July 2026; not tax advice. The FTA’s document requirements and system checks are applied case by case and may change. Confirm your position with a qualified tax adviser or the FTA before acting.