26 August 2026 · Evidence
What the FTA Wants in the Closure File
The Federal Tax Authority lists closure evidence for a business no longer making taxable supplies: a cancelled trade licence, liquidation letter, board resolution, latest financial statement and a labour ministry letter confirming employees. The exact request depends on the deregistration reason. Article 21 of Federal Decree-Law No. 8 of 2017 supplies the legal trigger, while the FTA service card supplies the document list.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Start with the event that ended taxable activity
The closure file should show why taxable activity stopped and when it stopped. The Federal Tax Authority's VAT Deregistration service lists a cancelled trade licence copy, liquidation letter, board resolution, latest financial statement, and a letter from the labour ministry confirming employees for the route where the business is no longer making taxable supplies. Each object answers a different part of the closure story.
The cancelled licence proves a legal or commercial event. The board resolution shows that the company approved the decision. The liquidation letter explains the formal route where liquidation is taking place. None of those papers, alone, proves the last taxable supply. Pair them with the final invoice, delivery note, service completion record, and bank entry that show what the business actually did.
Example: the financial turnover template records AED 187,500 of taxable supplies, while the attached latest financial statement records AED 375,000. AED 375,000 - AED 187,500 = AED 187,500 to explain. That difference may reflect a classification or period issue, but the reviewer should not have to guess. Reconcile the two documents before uploading them.
The selected reason determines the useful evidence
The FTA service card does not use one universal document pack. It groups requirements by the reason for deregistration, including cancellation of a licence, sale of a licence, cessation by a natural person, and supplies below the voluntary registration threshold. The same business can hold documents for more than one route, but the application should choose the route that matches the facts.
A below-threshold case calls for a financial turnover template, latest financial statement, and an official declaration that the business will not exceed the VAT registration threshold in the next 30 days. A licence-cancellation case calls for different closure objects. Uploading a cancelled licence when the real basis is below-threshold activity leaves the central question unanswered.
If your closure file is being assembled today, read the reason shown in EmaraTax before scanning anything. We would not upload a large folder of unrelated papers, because a reason-specific pack lets the licence, board record, accounts, and activity evidence tell one story. The reason for that view is practical: the FTA service itself separates documents by deregistration basis.
A good pack has an index and a reconciliation
The deliverable is more than a pile of PDFs. Start with an index naming each document, its date, and the fact it proves. Put the closure decision first, then the licence or liquidation evidence, the last financial statement, the turnover template where required, the final activity records, and the employee evidence listed for the selected basis. Use the same business name and TRN throughout.
The financial statement should not float separately from the VAT records. Tie its sales figure to the final VAT returns, bank reconciliation, sales ledger, and sample invoices. Tie the closure date to a board minute or licence record, then test the last delivery or service entry. If the dates do not line up, write the explanation and retain the object that supports it.
Exiloz can sort the closure evidence, identify missing records, prepare the financial turnover working, and assemble the VAT application file. The FTA still decides the request. Exiloz is not a registered Tax Agent, and this support is not a statutory audit. The useful boundary is clear: organise and explain the evidence, then submit it through the taxpayer's authorised account.
Build the file around the reason selected
First, export or note the VAT registration details and the reason available in EmaraTax. Second, create a date line from the last taxable supply to the licence cancellation, liquidation decision, or other event that ended activity. Third, reconcile the financial statement to the VAT account. This order exposes a missing record before it becomes an FTA information request.
Fourth, label each upload with a plain description and keep the source file unchanged. Fifth, submit the application through the VAT Actions menu and save the receipt. If the FTA requests additional information, answer the exact question, add the missing object, and retain the request and response. Do not replace an old file without preserving what was originally sent.
A reviewer should be able to open the index and find the document behind every material statement. If the application is due within 20 business days of the deregistration obligation, complete the date line first. The FTA service says an incomplete request can lead to a further 20-business-day response period after additional documents are submitted, so missing evidence has a real timing effect.
| Closure basis | Core evidence | Why it matters |
|---|---|---|
| Cancellation of licence | Cancelled licence, liquidation letter, board resolution | Shows the closure event and approval |
| Sale of licence | Old and amended sale or licence contract | Shows the change in ownership or control |
| Natural person cessation | Proof of cessation and financial turnover template | Shows the activity ended and the figures |
| Below voluntary threshold | Turnover template, latest statement, official declaration | Supports the selected deregistration route |
The missing document is usually a missing explanation
The strongest closure file does not claim more than its documents show. A board resolution can prove approval. A cancelled licence can prove cancellation. A final invoice and delivery record can support the last taxable supply. A financial statement can show the reported figures. The application becomes reliable when those objects connect through dates, names, amounts, and the same business activity.
The FTA service card lists the documents for each basis, but it does not state that every legal form, free-zone record, or liquidation route can use one identical pack. That is the boundary of the public evidence. If your company has a special closure document or a mismatch between records, include a short explanation and let the FTA request any further item rather than inventing certainty.
After reading this page, you should be able to name the closure reason, the document that proves it, and the reconciliation that supports the figures. If one of those is missing, the next step is not a longer upload. It is obtaining the object or writing the explanation that connects the existing records. That is what turns closure evidence into a reviewable application.
Frequently Asked Questions
For assembling evidence before the FTA review.
What documents are needed after licence cancellation?
The Federal Tax Authority’s VAT deregistration service lists a cancelled trade licence copy, liquidation letter, board resolution, latest financial statement and a letter from the labour ministry confirming employees for a business no longer making taxable supplies. The FTA may request more information if the file does not establish the closure reason.
Does the financial statement need an audit?
No specific audit requirement is stated in the Federal Tax Authority’s VAT deregistration service card for this route. It lists the latest financial statement and gives a trial balance, profit and loss statement or balance sheet as examples, marked audited or unaudited. Use the form of accounts that accurately supports the closure.
Does every business submit the same evidence?
No. The Federal Tax Authority groups required documents by the deregistration basis, including licence cancellation, sale of licence, below-threshold activity and natural-person cessation. Select the reason that matches the facts, then prepare the documents shown for that row instead of uploading an unrelated pack.
Can Exiloz prepare the closure file?
Yes. Exiloz can sort the licence, liquidation, board and financial records into a submission pack, identify missing evidence and prepare the VAT deregistration application. The Federal Tax Authority still decides the request, and any additional information request must be answered through the EmaraTax account.
Is your closure file complete?
Exiloz checks the closure reason against the FTA document list and prepares the records for a complete VAT deregistration request.