UAE Corporate Tax & VAT Registration and Deregistration Deadlines (With Penalties)

Understanding when to register and deregister for Corporate Tax (CT) and Value Added Tax (VAT) in the UAE is critical. Missing deadlines issued by the Federal Tax Authority (FTA) can result in heavy penalties, even if your business has no revenue.

Regulatory Authority

All UAE tax registrations, deregistrations, and penalties are administered by the Federal Tax Authority.

Corporate Tax (CT) – Registration & Deregistration Deadlines

When is Corporate Tax Registration Required?

Corporate Tax registration is mandatory for:

• All UAE companies (Mainland & Free Zone)
• Free Zone Persons, including those eligible for 0% Corporate Tax
• Individuals conducting business once turnover exceeds AED 1,000,000

Corporate Tax Registration Deadline

• Companies must register within 3 months from the date of Incorporation (based on license issue date).
• Individuals must register within 3 months of exceeding AED 1,000,000 turnover.

Note: Corporate Tax is not turnover-based for companies. Having a valid trade license itself creates a registration obligation.

Penalty for Late Corporate Tax Registration

Penalty: AED 10,000

When to Deregister for Corporate Tax

Corporate Tax deregistration is required when:

• The business permanently ceases operations
• The trade license is cancelled or liquidated

Corporate Tax Deregistration Deadline

Within 3 months from the date of cessation or license cancellation.

Penalty for Late Corporate Tax Deregistration

Penalty: AED 10,000

Value Added Tax (VAT) – Registration & Deregistration Deadlines

When is VAT Registration Required?

VAT registration depends on taxable turnover calculated on a rolling 12-month basis.

• Mandatory: Taxable supplies exceed AED 375,000
• Voluntary: Taxable supplies between AED 187,500 and AED 375,000
• No registration: Only exempt supplies

Important: Zero-rated supplies are included in VAT threshold calculations.

VAT Registration Deadline

Within 30 days from the date taxable supplies exceed AED 375,000.

Penalty for Late VAT Registration

• AED 10,000 fixed penalty
• Additional penalties and backdated VAT liability

When to Deregister for VAT

VAT deregistration is required when:

• Taxable turnover falls below AED 187,500
• Business stops making taxable supplies
• Trade license is cancelled

VAT Deregistration Deadline

Within 20 business days from cessation or eligibility for deregistration.

Penalty for Late VAT Deregistration

• AED 10,000 fixed penalty
• AED 1,000 – AED 2,000 per missed VAT return

Corporate Tax vs VAT – Deadline Comparison

Key Takeaways for UAE Businesses

✔ Corporate Tax is existence-based, not revenue-based
✔ VAT is strictly turnover-based
✔ FTA does not auto-register or auto-deregister
✔ Penalties apply even if there is no income

Professional advice: Monitor deadlines actively to avoid unnecessary penalties and compliance risks.