VAT registration does not last forever. When a business stops making taxable supplies or falls below the thresholds, the registration must be closed properly, and the closing steps carry their own deadlines.
Mandatory and voluntary deregistration
- Mandatory: you stop making taxable supplies, for example when the business closes. You must apply within 20 business days of the event.
- Voluntary: your taxable supplies and expenses have fallen below the voluntary registration threshold and are expected to stay there.
The 20 business days run from the date the event happens, not from the date you decide to act.
The process on EmaraTax
- Prepare the final accounts and confirm all earlier returns are filed.
- Submit the application with the effective date and supporting letters, such as a company letter confirming turnover will not pass the threshold in the next 30 days.
- Respond to any FTA queries. Review generally takes about 20 business days from a complete application.
- File the final return and settle any tax due within 28 days of the effective deregistration date.
Closing a company?
Align VAT deregistration with your liquidation timetable so tax and licence steps do not collide.
Mistakes that cause delay or penalties
Late application
Missing the 20 business day window can attract an administrative penalty.
Unfiled returns
The FTA expects earlier returns to be complete before it closes the registration.
Ignoring stock and assets
Goods and assets still held at deregistration can create a VAT charge in the final return. Review them first.
Discarding records
Keep VAT records for at least five years after the relevant period.
Key takeaways
- Mandatory applications are due within 20 business days of the triggering event.
- The final return and payment are due within 28 days of the effective date.
- Clear stock, assets and old returns before applying.
Frequently asked questions
Can I deregister and register again later?
Yes, if you later meet the conditions. A new application is made at that time.
Is there a government fee?
The FTA states the service is free of charge. Professional fees depend on the complexity of your file.
Talk to a chartered accountant
Questions about your own situation? Reach us directly and we will reply with clear next steps.
This article is general information and not advice for your specific circumstances. Rules and thresholds change, so confirm the current position before you act.
