VAT deregistration is the process through which a business cancels its VAT registration with the Federal Tax Authority when it no longer meets the conditions for registration or has ceased business operations. This ensures that the business is removed from the VAT at FTA portal and is no longer required to file VAT returns or charge VAT on its supplies.

A business will apply for deregistration if its annual turnover falls below the mandatory VAT registration threshold of AED 375,000, if it has ceased all business activities in the UAE, if it is closing or winding up operations, or voluntarily, provided it meets the criteria for deregistration.