VAT deregistration
In one sentenceEnding a business's VAT registration because its activity has stopped or its supplies have fallen below the threshold, at its request or by ZATCA's decision.
Simply put
If you stop carrying on a taxable activity, or your supplies fall below the registration threshold, you may request deregistration or be required to deregister.
Before deregistering you file your final return and pay what you owe, and watch the inventory and assets you still hold, because VAT on them may become due on deregistration.
Example
The owner of a clothing shop closed his business for good: he applies for deregistration after the last return, and stops showing the VAT number on any invoice after the deregistration date.
Don't confuse it with
Voluntary VAT registrationVoluntary registration is the start of a relationship with VAT by your decision, and deregistration is its end.