Cancelling a VAT registration number

By Tolley
VAT_tax_img5

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Cancelling a VAT registration number
  • When can a VAT registration be cancelled?
  • Specific transactions
  • Temporary suspension of taxable supplies
  • Notifying HMRC
  • What happens next?

This guidance note provides an overview of the procedure that should be followed if a business is either required or decides to cancel its UK VAT registration number. This guidance note should be read in conjunction with the Cancelling a VAT registration ― points to consider guidance note.

When can a VAT registration be cancelled?

A VAT registration number can be cancelled compulsorily or voluntarily depending on the circumstances.

VATA 1994, Sch 1, para 13, Schs 1A, 2, 3, 3A; SI 1995/2518, regs 5(3), 25(4); VAT Notice 700/11 ; De Voil Indirect Tax Service V2.151, V2.152 (subscription sensitive); VATDREG01000
Compulsory cancellation

A business will be required to cancel its VAT registration number in the following circumstances:

SituationDetails
The business ceases to make taxable suppliesIf the business ceases making supplies that are liable to VAT at the standard, reduced or zero rate, then it will be required to cancel its VAT registration number
VATDREG04100
The business is soldIf the business is sold or transferred to another party and the existing owner will cease making taxable supplies, the VAT registration number will either need to be cancelled or transferred to the new owner. Please see the

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