VAT De-registration; When to do it?


A taxable person must notify the FTA of the requirement to deregister within 20 business days from the end of the month in which any of the following occurs:

  1. the taxable person ceases making taxable supplies; or
  2. the value of the taxable person’s taxable supplies in the preceding 12 calendar months is less than the Voluntary Registration

The FTA will deregister the taxable person if they are satisfied that:

  1. the taxable person no longer makes taxable supplies and does not intend to make any taxable supplies in the next 12 months; or
  2. the value of the taxable person’s taxable supplies or taxable expenses over the previous 12 month period is less than the Voluntary Registration Threshold and the taxable person does not anticipate making taxable supplies or incur taxable expenses in excess of the Voluntary Registration Threshold in the next 30

The taxable person will be deregistered with effect from the last day of the tax period during which they met the conditions for deregistration, or from any other date as may be determined by the FTA. In order to be deregistered the person must be up to date with their tax returns and associated payments.

Where a taxable person is not required to deregister, the person may apply for a voluntary deregistration if the total value of their taxable supplies in the previous 12 months was less than the Mandatory Registration Threshold. However, if the person has voluntarily registered for VAT, voluntary deregistration will not be possible until 12 months have elapsed since the date of registration.