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VAT Deregistration
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Hassle-Free VAT Deregistration Services for Your Business
Are you closing your business, making very low sales, or no longer selling in Saudi Arabia? You may need to deregister from VAT with the Zakat, Tax and Customs Authority (ZATCA). Our VAT deregistration services make the process easy, fast, and fully compliant with Saudi law.
What is VAT Deregistration?
VAT deregistration is when a business removes itself from the VAT register with the ZATCA. This happens when a business no longer meets the rules for VAT. After deregistration, a business stops charging VAT to its customers.
VAT deregistration is controlled by the Value Added Tax Law and the VAT Implementing Regulations, especially Article 13.
Who Needs VAT Deregistration Services KSA?
You need VAT deregistration if your business meets any of these conditions:
Business Closure:
You permanently stop trading or close your company. Non-resident businesses with no sales in the past 12 months must also deregister.
Low Annual Sales:
Your total sales or expenses fall below SAR 187,500 in the last 12 months and are expected to remain low for the next year. Annual totals for the last 24 months must also be below SAR 375,000.
Voluntary Deregistration:
You registered voluntarily and have been registered for at least 12 months, but now want to cancel registration.
Our VAT deregistration KSA service checks your numbers and confirms if you qualify for deregistration under Article 13 of the VAT Implementing Regulations.
What Changed Recently — 2024/2025 Amendments & What It Means for Your Business?
In April 2025, ZATCA made some updates to the VAT rules. They clarified how things like deregistration, “nominal supplies,” transfers of going concern, and e-commerce should be handled.
Here’s the important part:
Even after you deregister, certain actions can still trigger VAT.
For example, if you use or sell business assets after deregistration, ZATCA may treat it as a “deemed supply.” That means VAT could still apply. So it’s important to know exactly what assets or stock you have when you deregister.
In simple terms:
Deregistering doesn’t mean all VAT responsibilities disappear. If you sell inventory, transfer assets, or do other business activities after deregistering, you might still need to pay VAT under the new rules.
What Happens After Deregistration?
Even after the business VAT closure Saudi Arabia, your business must:
- Keep all invoices, contracts, and accounting records for 6–15 years.
- Pay any VAT still owed.
- Handle assets and inventory carefully, as some sales may still have VAT under the 2025 amended regulations.
- Notify ZATCA if business activity or assets are transferred to another party.
We guide you through all post-deregistration responsibilities to avoid fines or future VAT issues.
Types of VAT Deregistration
When it comes to VAT in Saudi Arabia, there are three main types of deregistration. Each type has its own rules and reasons:
Mandatory Deregistration
This is when the law requires a business to deregister. For example:
- Your business stops trading permanently or closes.
- You are a non-resident business and haven’t made any taxable sales in Saudi Arabia for the past 12 months.
Mandatory deregistration means no more VAT to collect once you close.
Low Turnover Deregistration
If your business earns very little and falls below the set thresholds, you can deregister:
- Total sales or expenses in the last 12 months are less than SAR 187,500.
- Total sales or expenses in the last 24 months are less than SAR 375,000.
- Your expected sales or expenses for the next 12 months will also remain below SAR 187,500.
This type is for small or low-activity businesses that no longer meet the VAT registration requirements.
Voluntary Deregistration
Some businesses registered voluntarily even if they were not required to. If you meet certain conditions, you can choose to deregister voluntarily:
- You have been registered for at least 12 months.
- You meet the low turnover rules or simply decide to stop being registered.
Voluntary deregistration lets you stop VAT while following Article 13 rules. Our VAT deregistration Saudi Arabia service handles all three types so you never worry about missing a rule or step.
Our VAT Deregistration Process
Our VAT deregistration services handle every step, so you don’t have to worry:
Eligibility Assessment:
Review your business sales, expenses, and activity to see if you meet deregistration rules.
Document Preparation:
Prepare all required documents, including closure proof, turnover statements, and contracts.
Application Submission:
Fill out and submit your deregistration application via the ZATCA portal within 30 days of eligibility.
ZATCA Follow-Up:
Respond to any ZATCA queries and provide additional evidence if required.
Confirmation:
Once approved, we will notify you of the effective deregistration date.
Information Required for VAT Deregistration
To cancel your ZATCA VAT cancellation KSA, you must submit an application to the authority using the official form. The application should include:
- The registrant’s full name
- The tax registration number
- Reasons for requesting deregistration and proof that the conditions are met
- The date when the deregistration conditions were fulfilled
- The total value of supplies made in the past 12 months, and an estimate for the next 12 months
- The total value of expenses in the past 12 months and an estimate for the next 12 months
- Any additional information requested by the authority
Time Frame for VAT Deregistration
ZATCA gives a very clear timeline for VAT deregistration. When your business meets the rules for deregistration, you must submit your request within 30 days. This deadline is set under Article 13 of the VAT Implementing Regulations, so it is important not to delay.
After you submit your application, ZATCA reviews your documents and your VAT history. There is no fixed number of days for approval, but most cases are processed within a short period if all documents are correct. ZATCA will then tell you the effective date of your deregistration. This date is very important because your VAT duties continue until that day.
Even after the deregistration date, you may still need to file any final VAT returns, pay any outstanding VAT, and handle any deemed supply checks on your remaining assets under the 2024/2025 updated rules.
Legal Compliance You Can Trust
Our VAT deregistration services cover all technical requirements under:
Article 13, VAT Implementing Regulations:
Deregistration conditions and procedures.
Articles 60 & 61, VAT Implementing Regulations:
Record-keeping rules.
Value Added Tax Law:
Main VAT law in Saudi Arabia.
2025 Amendments:
Rules for “deemed supplies” and asset transfers after deregistration.
You get full compliance with the law without the stress of managing the process alone.
FAQ's
What happens to my VAT returns after I apply for deregistration?
ZATCA still needs your final VAT return. This return covers the period up to your deregistration date. You must file it and pay any VAT you still owe. We help you prepare this final return correctly so there are no errors or penalties.
Will ZATCA audit my business after deregistration?
Yes, it is possible. ZATCA can review your past VAT returns, invoices, and records anytime within their audit window. This is why you must keep all VAT documents for 6 to 15 years. We guide you on what to keep and how to store it.
Can I register for VAT again in the future?
Yes. If your business starts growing again or meets the registration threshold later, you can reapply for VAT registration. The process is simple, and we can help you register again when needed.
What if ZATCA rejects my deregistration request?
This usually happens when documents are missing, or your business does not meet deregistration rules. Our VAT deregistration Saudi Arabia services check everything first to make sure your request meets the legal criteria. If ZATCA asks for more proof, we handle the submission and follow-up.
Do I still need to issue tax invoices after applying for deregistration?
Yes. Until ZATCA approves your deregistration and gives you the effective date, you must still issue VAT invoices and charge VAT where required. You must follow the full VAT rules until the final approval.
What happens to my tax credits and VAT input amounts?
If you still have input VAT credits, ZATCA may review them during deregistration. Some credits may be adjusted based on asset use or deemed supply rules. We calculate your final input VAT standing so there are no surprises.
Is deregistration the same for resident and non-resident businesses?
No. Non-resident businesses have different rules. If a non-resident business has no taxable activity in the Kingdom, it must deregister even if a year has not passed. We make sure the correct documents for non-residents are submitted.
Do I need to cancel my e-invoicing setup too?
Yes, but only after ZATCA approves your deregistration. Once your VAT account is closed, your e-invoicing profile must also be closed properly. We help you complete this step so nothing stays pending on the ZATCA portal.
What if I still have contracts or agreements running after deregistration?
ZATCA checks if those contracts create any taxable activity. If they do, you may still need to account for VAT on them. We review your contracts and guide you on what needs VAT and what does not.
Can I deregister even if I have VAT penalties?
Yes, you can apply, but deregistration will not remove penalties. You must clear all outstanding fines and late amounts. We help you settle dues and close your VAT account cleanly.
If you want a clean exit from VAT, we can make it easy!
Our team prepares your records, fixes old issues, and works directly with ZATCA so you can move forward without stress. Message us now to get the best VAT deregistration services in Saudi Arabia today!
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