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UAE VAT Fundamentals/Module 11: Deregistration & Final Return
3 min

The Final VAT Return

How to prepare and file the final VAT return upon deregistration, including special considerations.

The Final VAT Return

Upon deregistration, the taxable person must file a final VAT return covering the period from the start of the last tax period up to the deregistration date.

What to Include

  1. All output tax due on supplies made up to the deregistration date.
  2. All input tax recoverable on purchases made up to the deregistration date.
  3. VAT on assets: If the business holds assets on which input tax was previously claimed (e.g., equipment, furniture), the assets are treated as a deemed supply — output tax must be accounted for at market value.

Deemed Supply on Deregistration

When a business deregisters, any goods on which input tax was previously claimed are treated as if they were supplied on the deregistration date. The business must account for output tax (5%) on the market value of these assets.

Exception: If the assets are transferred to another taxable person who can recover the input tax, the deemed supply may not apply (e.g., transfer of a going concern).

Timeline

The final VAT return must be filed by the 28th of the month following the end of the tax period in which the deregistration took effect.

Post-Deregistration Obligations

  • Record retention: Continue to maintain VAT records for 5 years (15 years for real estate) after deregistration.
  • FTA correspondence: Respond to any FTA queries about past tax periods.
  • Refunds: Any outstanding VAT refunds should be claimed before deregistration is finalized.

Cancellation of TRN

Upon deregistration, the FTA cancels the business's TRN. The business must stop:

  • Charging VAT on supplies
  • Issuing tax invoices
  • Filing VAT returns

If the business resumes making taxable supplies in the future, it must re-register.

Practical UAE example

**Abu Dhabi Service Company**: A consulting firm deregisters on 15 June. Its last tax period was Q2 (April–June). The final VAT return covers 1 April to 15 June. The firm reports all output tax and input tax for this period. Additionally, the firm holds office furniture (book value AED 20,000) on which AED 1,000 input tax was previously claimed. On deregistration, the furniture is a deemed supply — the firm must account for AED 1,000 output tax (5% of AED 20,000). The final return is due by 28 July.

Key takeaways

  • The final VAT return covers the period up to the deregistration date.
  • Assets with previously claimed input tax are treated as deemed supplies.
  • Final return due by the 28th of the month following deregistration.
  • Records must be retained for 5 years (15 for real estate) after deregistration.

Authoritative sources

Federal Decree-Law No. 8 of 2017 on Value Added Tax

United Arab Emirates — Federal Tax Authority · The VAT Law — Articles 1 to 82 (as amended by Federal Decree-Law No. 18 of 2022)

Effective: 1 Jan 2018Verified: 5 Oct 2026View source

Cabinet Decision No. 52 of 2017 on the Executive Regulations of the Federal Decree-Law No. 8 of 2017 on VAT

United Arab Emirates — Cabinet / Federal Tax Authority · Executive Regulations (as amended by Cabinet Decisions No. 46/2020, 24/2021, 88/2021, 99/2022, 100/2024, and 100/2025)

Effective: 1 Jan 2018Verified: 5 Oct 2026View source

FTA — VAT Returns and Filing

UAE Federal Tax Authority · VAT return filing, tax periods, due dates, payment methods

Effective: 1 Jan 2018Verified: 5 Oct 2026View source
Knowledge check

1. What happens to business assets on which input tax was claimed when the business deregisters?

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This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.