Aqid ERPWhen deregistration is mandatory
A registered business must apply to deregister within 30 days of either case:
- It stops its economic activity, or stops making taxable supplies, for example when it closes or moves entirely to exempt activities.
- Its taxable supplies fall below the voluntary threshold of SAR 187,500, measured by the tests the regulations set on its past and expected supplies.
When it is voluntary
A business whose taxable supplies have fallen below the mandatory threshold of SAR 375,000, but not below SAR 187,500, is no longer obliged to be registered. It may apply to cancel its registration, or stay registered and keep deducting input VAT.
How to apply, and the last return
The application is made in the VAT section of ZATCA's portal: choose deregistration, complete the form, attach the supporting documents and submit; ZATCA sends a notification when the account is deregistered and sets the date it takes effect. ZATCA approves it only once outstanding returns and amounts are settled, and cancelling does not clear anything owed before that date. Goods and assets the business keeps when it ceases are a deemed supply, declared and paid in the return for the period of deregistration.
What follows
Deregistering from VAT revokes the business's e-invoicing identifiers (CSIDs) automatically, so its systems can no longer clear or report invoices. The Fatoora portal stays open for 90 days, only to see the list of devices that were onboarded. Invoices, credit and debit notes, books and records must still be kept after deregistration, for at least the six years ZATCA's guidance sets, longer for some records. Cancelling the tax identification number is a separate step, possible only once VAT and excise are both deregistered.
How Aqid ERP helps
The last return is settled in Aqid ERP like any other period: the payment, or the refund when input VAT is the larger, is recorded against it and clears both VAT accounts. Every invoice issued stays in the company with the answer ZATCA gave it, cleared or reported.