A business must apply for VAT de-registration if: taxable supplies fall below AED 187,500 per year and are expected to remain below that level, or the business ceases making taxable supplies entirely. De-registration is not automatic — the business must submit an application through EmaraTax. The FTA reviews the application and, once approved, cancels the TRN. Until the TRN is formally cancelled, the business remains a taxable person with all associated filing obligations. De-registering too early (before supplies actually fall below the threshold) and too late (continuing to file zero-value returns when activity has ceased) are both common errors.
Watch out: Failing to de-register when required — for example, after a business has wound down operations — means VAT return obligations continue to accumulate. Missing returns carry a AED 1,000 penalty per filing.
See also: Value Added Tax (VAT), Tax Registration Number (TRN), VAT Return
