A compulsory VAT deregistration is usually required where a VAT registered business:
- stops making taxable supplies
- sells a business
- changes legal status
- disbands a VAT group
- joins a VAT group
- joins the agricultural flat rate scheme
In some circumstances it may be possible to keep the existing VAT registration number. A voluntary deregistration can be made by businesses that do not expect taxable their turnover to exceed the deregistration limit. The current deregistration limit is £83,000.
A business that deregisters can make late claims for input tax on services received whilst it was VAT registered (subject to the usual VAT time limits).
The Form VAT 7: Application to Cancel your VAT Registration has been updated. To cancel a VAT registration the print and post iForm should be completed online, printed and then mailed to HMRC.