VAT de-registration is simply the procedure of terminating VAT registration of the taxable person. VAT deregistration can be applied for by an individual registered under VAT or done by the Federal Tax Authority on finding that a person meets the conditions for de-registration. business or an individual registered under VAT can only apply for VAT Deregistration If the business stops making taxable supplies, then they must apply for VAT Deregistration. Or he still making taxable supplies however the value in the preceding 12 calendar months is less than the Voluntary Registration Threshold they should apply for Deregistration, The consequence for neglecting to apply for a mandatory de-registration of VAT within the predefined timeframe is penalty AED 10,000.