VAT Deregistration Saudi Arabia

A business must apply to ZATCA to cancel its VAT registration when it no longer meets the registration requirements — for example, when annual taxable supplies fall below SAR 375,000 for two consecutive years, when the business ceases trading, or when it is liquidated. Failure to deregister when required results in continued filing obligations and penalties for non-submission.

Intelli Solutions manages the complete VAT deregistration process — from assessing eligibility and preparing the ZATCA deregistration application, to filing the final VAT return, settling any outstanding VAT liabilities, and obtaining ZATCA's written confirmation of TRN cancellation. We also handle the associated obligations under ZATCA's e-invoicing (Fatoorah) and withholding tax registrations.

When Is VAT Deregistration Required?

VAT deregistration must be applied for within 30 days of the triggering event:

• Annual taxable supplies fall below SAR 375,000 for two consecutive 12-month periods
• The business permanently ceases all taxable activities
• The business is liquidated, dissolved, or wound up
• A sole proprietor or partnership is restructured into a company (new registration required)
• A VAT group is dissolved or a member leaves a VAT group

Voluntary deregistration is also available for businesses that registered voluntarily and whose supplies now fall below the mandatory threshold — applicable after remaining registered for a minimum of 12 months. Note that deregistration does not retrospectively cancel VAT obligations — all returns must be filed and all liabilities paid before ZATCA approves the cancellation.