English text status

English translation published by the Legislation and Legal Opinion Commission. The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

This Article sets mandatory deregistration cases and permits an optional request where Supplies fall below the mandatory threshold but remain above the voluntary threshold. Registration does not end on application; the NBR sets the effective date in its decision.

Who should read this?

Registrants that cease activity, stop making Taxable Supplies or experience declining Supplies.

Why does it matter?

Confusing the activity-cessation date with the effective deregistration date can leave Returns and invoices unaddressed. Mandatory cases require application within 30 days and outstanding Returns, Tax and fines must be cleared before notice is issued.

Mandatory or optional deregistration30-day applicationDuties continue until NBR decision

Current text

The registrant shall apply to the Bureau to deregister in any of the following cases: If he has ceased to carry out his Economic Activity. If he has ceased to make Taxable Supplies for a period of twelve consecutive months. If,at the end of any month, the value of his Taxable Supplies made during the preceding twelve months falls below the Voluntary Registration Threshold, and he does not anticipate that the value of these Supplies and his expenses during the following twelve months will exceed the Voluntary Registration Threshold. The registrant may apply to the Bureau to deregister if the value of his Taxable Supplies during the preceding twelve months falls below the Mandatory Registration Threshold and exceeds the Voluntary Registration Threshold. The Regulations shall specify the procedures, controls and conditions for deregistration, and the rules regulating the cases for rejecting deregistration.

Manage deregistration

  1. 1

    Identify cessation, 12 months without Taxable Supplies, a fall below the voluntary threshold, or an optional request between the two thresholds.

  2. 2

    Apply within 30 days where deregistration is mandatory.

  3. 3

    Provide evidence of cessation and previous and expected Supply values as relevant.

  4. 4

    Submit all Returns and pay Tax and fines due.

  5. 5

    After effectiveness, stop holding out as registered and retain records and invoices for five years from deregistration.

Connected provisions

Direct legislative link

Regulations — Article (45)

Deregistration

It sets the 30-day deadline and documents the NBR may request.

Open connected Article
Direct legislative link

Regulations — Article (46)

Deregistration application

It sets minimum application data, including the reason and past and expected Supplies.

Open connected Article
Direct legislative link

Regulations — Article (47)

Processing deregistration

It sets processing, pre-notice settlements, effective date and post-deregistration duties.

Open connected Article

Official guides and tools

Official guide

VAT Deregistration Manual

Cases and procedure

Connected Madar tools

Connected Madar tools

VAT Registration Centre

Check registration thresholds using your inputs, with mandatory, voluntary and uncertain cases distinguished.

Illustrative example by Madar

Application does not cancel registration immediately

When a business ceases activity and applies, it remains responsible for Returns and invoicing according to its status until the NBR decides and specifies the effective date. It cannot select its own deregistration date.

Questions to help you apply it

  • Is deregistration mandatory or optional, and when did the reason arise?
  • Was the request filed on time with evidence?
  • Have all Returns, Tax and fines been cleared before the NBR decision?