A compulsory VAT deregistration is usually required where a VAT registered business:
<ul>
<li>stops making taxable supplies </li>
<li>sells a business </li>
<li>changes legal status </li>
<li>disbands a VAT group </li>
<li>joins a VAT group </li>
<li>joins the agricultural flat rate scheme </li>
</ul>
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).
<span>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.</span>