UAE VAT De-registration in MEYDAN Free Zone: A Complete Guide

UAE VAT De-registration in MEYDAN Free Zone: A Complete Guide

UAE VAT De-registration in MEYDAN Free Zone

Navigating UAE VAT deregistration can be complex — especially for businesses operating in free zones like MEYDAN Free Zone. While the VAT system in the UAE applies uniformly across the country, free zone companies must understand specific triggers and procedures for deregistering from the Federal Tax Authority (FTA).

Understanding VAT in MEYDAN Free Zone

MEYDAN Free Zone companies are subject to UAE VAT just like mainland entities. Unless your business operates in a designated zone recognized for special VAT treatment, standard rules apply: a 5% VAT charge on taxable goods and services

Standard VAT rate: 5%

• Who must register: Any business whose taxable supplies exceed the mandatory threshold of AED 375,000 annually.

• Voluntary registration: Allowed if supplies or expenses exceed AED 187,500.

Even in free zones — including MEYDAN — your business still needs to register for VAT if these thresholds apply.

When VAT Deregistration Becomes Necessary

There are clear rules from the FTA about when a business must apply to deregister from VAT. A deregistration request must be submitted within 20 business days from the date a deregistration condition arises. You should consider deregistering from VAT in these circumstances: 

Business Closure or Cessation

If your company in MEYDAN Free Zone has stopped all taxable activities permanently, deregistration is required. Closure can include license cancellation or complete shutdown.

Turnover Falls Below Thresholds

If your taxable supplies over the last 12 months fall below AED 375,000 and you do not expect them to exceed this again within 30 days, deregistration may be mandatory.

Below Voluntary Threshold (Optional)

You may also voluntarily deregister if your supplies or expenses over 12 months remain below AED 187,500 and you no longer expect to exceed this level. Voluntary deregistration allows you to exit the VAT system if your business downsizes or shifts focus.

Change in Business Structure or Activities

Sometimes, restructuring or legal change triggers deregistration — for example, if your business merges with another entity that will handle VAT filings instead. This requires supporting documentation and FTA approval.

How to Apply for VAT Deregistration

The VAT deregistration process is fully online through the FTA’s EmaraTax portal:

• Log in to your EmaraTax account.

• Navigate to your VAT profile.

• Click “Deregister” and select the reason.

• Provide supporting documents (see below).

• Submit the application.

The FTA typically takes up to 20 business days to process complete applications. If additional information is needed, the timeline may extend.

Required Documents

Supporting evidence depends on the reason for deregistration but generally includes:

• Canceled trade license or business closure certificate

• Financial statements showing turnover decline

• Ministry of Labour confirmation (if relevant)

• Board resolution or official letter stating cessation or change

• Latest VAT returns and payment proofs

Final VAT Return & Obligations

Even after deregistration is approved:

• You must file a final VAT return up to the effective date of deregistration.

• All outstanding VAT liabilities must be settled in full.

• Records should be retained for at least five years, as required by UAE VAT law.

Penalties for Late Deregistration

Failing to apply within 20 business days from the date you become eligible can result in administrative penalties — including fines of up to AED 10,000.

To avoid this:

• Track your turnover regularly

• Monitor operational changes that affect VAT obligations

• Submit deregistration on time if conditions are met

Why Timely Deregistration Matters for MEYDAN Free Zone Firms

For businesses in MEYDAN Free Zone, VAT deregistration is not just a compliance exercise — it’s essential to:

• Eliminate unnecessary regulatory filings

• Avoid penalties and future audits

• Reflect true business status to banks, investors, and partners

• Streamline financial reporting and reduce administrative costs

Conclusion

VAT deregistration in MEYDAN Free Zone follows the same FTA rules that apply across the UAE. Whether you’re winding down operations or your revenue has dropped temporarily, it’s critical to understand your obligations and the correct procedure. Proper planning, documentation, and timely action help ensure a smooth deregistration process and maintain compliance with UAE tax laws.