Since the introduction of taxes in the UAE, there has been constant discussion around it. When to file? How to file tax returns? What are the penalties? How to register for CT or VAT or how to de-register? The list literally goes on and on. We have been guiding you throughout, and this piece of writing is part of a similar chain. In this blog, we walk you through the process of VAT de-registration, specifically its time frame.
Introduction
When a business in Dubai stops making taxable supplies or otherwise becomes ineligible for VAT, it must move to cancel its registration. VAT deregistration Dubai is an administrative step that has firm deadlines. Missing those deadlines creates avoidable penalties and extra work. This post explains the time frames you must know, how the Federal Tax Authority (FTA) handles applications, what the final filing and payment windows look like, and how an accounting company can make the whole process easier for you.
What triggers VAT deregistration in Dubai?
VAT deregistration Dubai is triggered most commonly when a taxable person ceases business, sells or transfers the business, or its taxable supplies fall below the statutory thresholds for mandatory or voluntary registration. A business also needs to deregister if it has been voluntarily registered and the conditions for that voluntary registration no longer apply. The legal starting point is the date on which the event occurs. From that date, the clock for applying for VAT deregistration Dubai starts running. The FTA requires that the application be submitted within a strict window from that date.
The window to apply: 20 business days. The single most important deadline is the application window. A registrant who becomes eligible for deregistration must submit the VAT deregistration Dubai application within 20 business days from the date the deregistration event occurred. This 20-business-day rule is set out in the FTA guidance and is repeated across official and practical guides. If you miss that 20-business-day window, you risk administrative penalties. In simple terms, 20 business days is roughly four weeks, not counting weekends and public holidays, so the practical deadline often feels shorter than it sounds.
How long does the FTA take to review?
It usually takes 20 working days. Once you submit a complete deregistration application through the EmaraTax portal, the FTA will review it. The public guidance and practice notes show the FTA typically aims to review a deregistration application within 20 working days from receipt. That review period is the FTA’s processing window, not a promise that the deregistration will be effective on day 20. In many straightforward cases, the review and pre-approval happen in about 20 working days. If the FTA requires additional information or there are outstanding liabilities, the review takes longer. Treat 20 working days as a baseline expectation, not a guaranteed delivery date.
Final return and payment deadlines after pre-approval
If the FTA pre-approves the deregistration, the registrant will usually be required to submit a final VAT return and settle any payable tax. The FTA’s guidance indicates that the final return and settlement must be completed by the deadlines specified in the pre-approval notice and the VAT user guide. In practice, many accounting advisers note that you will be expected to file the final return and make any payments within a window that commonly falls within 28 days of the effective deregistration date or as otherwise communicated by the FTA. That means you must have records reconciled and a cash plan in place before you submit the deregistration form.
Consequences of delay
Late filing of a deregistration application carries a specific administrative penalty. The Cabinet decisions that implement the VAT penalties set a late deregistration penalty at AED 1,000 for each month or part-month of delay, up to a maximum of AED 10,000. The VAT user guidance and FTA FAQs reiterate this exposure. Plan to avoid that by acting early, and if you are close to the deadline, get help from an accounting company immediately.
Common causes of delay
Common causes of delay are incomplete forms, missing supporting documents, outstanding VAT returns, unresolved tax liabilities, or ambiguity about the cessation date. If the FTA needs clarification, it will ask and the clock resets in a practical sense: your application will not be approved until you respond. Real-world experience shows that a clean submission with reconciled accounts often clears in about 20 working days. Submissions with issues commonly take several additional weeks; complex liquidation or business-sale matters can stretch the timeline to months. In other words, the FTA review target is 20 working days, but the real time to closure depends on how ready your records and your payments are.
The EmaraTax route
The VAT deregistration dubai process runs through the FTA’s EmaraTax e-services. The online journey asks you to state the date of cessation, the reason for deregistration, and to upload documents that support your case. The system will generate a reference number after submission and provide status updates. Experience from other FTA de-registration processes shows the portal flow is consistent: submit, receive pre-approval or request for more information, file final return and settle liabilities, and receive final confirmation with an effective deregistration date. The same user-interface model applies across tax types in the EmaraTax environment, so if your business has previously used the portal for corporate tax or VAT filings you will recognize the steps. The CT de-registration manual uploaded by some providers shows how EmaraTax handles a similar de-registration workflow and the same pattern applies for VAT.
Quick metrics to keep in mind
The essential numbers are precise and non-negotiable. Apply within 20 business days from the event that triggers deregistration. Expect the FTA to review within about 20 working days, though the actual time can be longer if the file is incomplete. Prepare to file and to settle final liabilities within the timeline the FTA sets, commonly within 28 days of the effective deregistration or as stated in the FTA communication. If you miss the application window, the late deregistration penalty is AED 1,000 per month up to AED 10,000. These figures are the core timing and cost metrics you should plan around.
Conclusion
Apply within 20 business days from the date you became ineligible. Expect an initial review of about 20 working days. Prepare to file your final return and settle any liabilities when the FTA asks, commonly within 28 days of the effective deregistration If you are unsure about the correct cessation date, the supporting documents you need, or how to calculate the final VAT position, bring in an accounting company. The right accounting company will lower the risk, shorten the timeline, and keep penalties off your balance sheet. Time in this process is currency. Treat it that way and SS &CO’s tax team is there to help you through the process.
