diff --git a/drivers/net/ethernet/mellanox/mlx4/en_netdev.c b/drivers/net/ethernet/mellanox/mlx4/en_netdev.c
index f3032fec8fce..02266e3de514 100644
--- a/drivers/net/ethernet/mellanox/mlx4/en_netdev.c
+++ b/drivers/net/ethernet/mellanox/mlx4/en_netdev.c
@@ -2281,8 +2281,16 @@ static void mlx4_en_add_vxlan_offloads(struct work_struct *work)
 	ret = mlx4_SET_PORT_VXLAN(priv->mdev->dev, priv->port,
 				  VXLAN_STEER_BY_OUTER_MAC, 1);
 out:
-	if (ret)
+	if (ret) {
 		en_err(priv, "failed setting L2 tunnel configuration ret %d\n", ret);
+		return;
+	}
+
+	/* set offloads */
+	priv->dev->hw_enc_features |= NETIF_F_IP_CSUM | NETIF_F_RXCSUM |
+				      NETIF_F_TSO | NETIF_F_GSO_UDP_TUNNEL;
+	priv->dev->hw_features |= NETIF_F_GSO_UDP_TUNNEL;
+	priv->dev->features    |= NETIF_F_GSO_UDP_TUNNEL;
 }
 
 static void mlx4_en_del_vxlan_offloads(struct work_struct *work)
@@ -2290,6 +2298,11 @@ static void mlx4_en_del_vxlan_offloads(struct work_struct *work)
 	int ret;
 	struct mlx4_en_priv *priv = container_of(work, struct mlx4_en_priv,
 						 vxlan_del_task);
+	/* unset offloads */
+	priv->dev->hw_enc_features &= ~(NETIF_F_IP_CSUM | NETIF_F_RXCSUM |
+				      NETIF_F_TSO | NETIF_F_GSO_UDP_TUNNEL);
+	priv->dev->hw_features &= ~NETIF_F_GSO_UDP_TUNNEL;
+	priv->dev->features    &= ~NETIF_F_GSO_UDP_TUNNEL;
 
 	ret = mlx4_SET_PORT_VXLAN(priv->mdev->dev, priv->port,
 				  VXLAN_STEER_BY_OUTER_MAC, 0);
@@ -2568,13 +2581,6 @@ int mlx4_en_init_netdev(struct mlx4_en_dev *mdev, int port,
 	if (mdev->dev->caps.steering_mode != MLX4_STEERING_MODE_A0)
 		dev->priv_flags |= IFF_UNICAST_FLT;
 
-	if (mdev->dev->caps.tunnel_offload_mode == MLX4_TUNNEL_OFFLOAD_MODE_VXLAN) {
-		dev->hw_enc_features |= NETIF_F_IP_CSUM | NETIF_F_RXCSUM |
-					NETIF_F_TSO | NETIF_F_GSO_UDP_TUNNEL;
-		dev->hw_features |= NETIF_F_GSO_UDP_TUNNEL;
-		dev->features    |= NETIF_F_GSO_UDP_TUNNEL;
-	}
-
 	mdev->pndev[port] = dev;
 
 	netif_carrier_off(dev);