You closed the business, or your sales dropped, and you applied to cancel your VAT registration. Weeks later the application is still pending, the FTA has sent it back with a query, or your VAT deregistration application was rejected outright. Meanwhile the TRN stays open, and so do your obligations.
In almost every case, a stuck or rejected VAT deregistration comes down to one of a handful of problems: returns or payments still outstanding, documents that do not prove the reason you gave, or figures that do not match what the FTA already holds. The good news is that each one can be fixed. This guide explains what the FTA is usually asking for, and what to do about it.
First, Check Where Your Application Actually Is
Log in and open your VAT deregistration on EmaraTax. Its status tells you what kind of problem you have:
Status (wording can vary) | What it usually means | What to do |
|---|---|---|
Submitted or under review | The FTA is still working through it | Wait, but keep filing returns until it is approved |
Returned for resubmission | The FTA has a query or needs more documents | Read the comment, fix the issue and resubmit |
Rejected | The reason or the evidence was not accepted | Find the cause below, fix it, and apply again |
Approved, final return pending | Deregistration is accepted, but not finished | File the final VAT return and pay any balance |
The FTA estimates about 30 business days to process a complete application, and up to another 30 business days after you respond to a request for more information. If your VAT deregistration is pending with the FTA for longer than that, there is almost always an open issue on the account.
Why Was My VAT Deregistration Rejected? 7 Common Reasons
1. Returns or payments are still outstanding
This is the most common reason by far. The FTA will not cancel a TRN while any VAT return is unfiled, any tax is unpaid or any penalty is still open. Many businesses stop filing as soon as they apply, assuming the registration has ended. It has not: you must keep filing returns for every period until the FTA approves the deregistration.
Fix: file every missing return, including nil returns for quiet periods, and pay what is due. If penalties have built up, see our guide to UAE VAT penalties and settle them before you resubmit.
2. Your VAT deregistration documents do not prove your reason
Every deregistration reason needs its own evidence. If you say the business has closed but upload no licence cancellation, or say your turnover dropped but give no figures, the FTA will send it back.
Reason you selected | What the FTA usually needs to see |
|---|---|
Business closed | Trade licence cancellation certificate or liquidation documents |
Stopped making taxable supplies | Signed letter confirming no taxable supplies in the next 30 days |
Turnover below the threshold | Financial turnover template for the last 12 months |
Company decision to deregister | Board resolution, or a signed declaration for a sole establishment |
Fix: match the documents to the reason. Upload clear PDF, Word, Excel or image files of up to 5 MB each, and make sure names and dates agree with your trade licence.
3. Your turnover figures do not match your VAT returns
The FTA compares the turnover you declare in the application with the sales you reported on your VAT returns. If the application says AED 120,000 for the year but your returns add up to AED 260,000, it will query the difference.
Fix: reconcile before you apply. Use the same figures as your filed returns, and if a return was wrong, correct it first through a voluntary disclosure. Our VAT return filing team can review past returns and prepare the correction.
4. You chose the wrong reason
Selecting "business closed" while the trade licence is still active, or "below threshold" when your last 12 months were above it, gets the application rejected. The reason has to match the facts on the day you apply.
Fix: pick the reason that matches your situation today. If the licence is still being cancelled, either wait for the cancellation certificate or apply on a different basis that you can prove now.
5. You registered voluntarily less than 12 months ago
If you registered for VAT voluntarily, you generally cannot deregister on an optional basis until 12 months have passed since registration.
Fix: check your registration date. If you are inside the 12 months and still trading, the application will not be accepted on that basis; keep filing until you are eligible, unless one of the mandatory reasons applies.
6. Your taxable supplies are still too high
Optional deregistration is only possible when your taxable supplies over the last 12 months were below AED 375,000. Mandatory deregistration on turnover applies below AED 187,500. If your figures sit above the level for the reason you chose, the FTA will refuse.
Fix: recheck the 12-month figure and the forecast for the next 30 days. If you do not qualify yet, wait until you do.
7. Branches, duplicate TRNs and tax groups
A branch that registered separately, a duplicate TRN, or a company inside a VAT tax group each follow a different route. A tax group member, for example, is removed through a tax group amendment, not a standard deregistration.
Fix: confirm which route applies before you apply. If you are unsure, check our VAT deregistration guide or ask us to review the account.
How to Respond to an FTA Query on Your VAT Deregistration
When the FTA returns your application, you usually get a comment saying what it needs. Handle it like this:
- Read the exact request. Answer what was asked, not what you think was meant.
- Fix the account first. File missing returns and pay balances before you resubmit, or the same query comes back.
- Upload proof, not explanations. A licence cancellation certificate settles a question that a long letter does not.
- Keep everything consistent. Names, dates and figures must match across the licence, the returns and the application.
- Resubmit promptly. The FTA's review starts again from your resubmission, so a slow VAT deregistration resubmission adds to the timeline.
Can I Reapply for VAT Deregistration After a Rejection?
Yes. A rejection is not final. Once you have fixed the cause, whether that is outstanding returns, missing documents or the wrong reason, you can submit a new deregistration application on EmaraTax.
Keep one thing in mind: until the TRN is cancelled, the registration is live. You still need to file returns on time and keep VAT records, and if you are past your deadline to deregister, the late application penalty can apply. Fixing the problem quickly is cheaper than waiting.
After Approval: Do Not Forget the Final Return
Approval is not the end. Your deregistration is only complete once the final VAT return is filed and paid, within 28 days of the effective date. That return must include VAT on any business stock and assets you still hold on which you reclaimed input VAT. The deregistration certificate appears in EmaraTax only after this is done.
A Quick Checklist Before You Resubmit
- All VAT returns filed, including nil returns
- All VAT, penalties and late payment charges paid
- The reason you select matches your situation today
- Documents that prove that reason, in accepted formats
- Turnover figures that match your filed returns
- At least 12 months since registration, if you registered voluntarily
- The correct route for branches, duplicate TRNs or tax groups
Get Your Deregistration Moving Again
If your application is stuck in queries or has been rejected, we can review your EmaraTax account, clear outstanding returns, prepare the right documents and resubmit for you. See our VAT deregistration services or book a free consultation.