Commentary

V2.151 Cancellation of registration where a person ceases to be liable to be registered

Part V2 Registration – deregistration

V2.151 Cancellation of registration where a person ceases to be liable to be registered

Cancellation of VAT registration—taxable supplies

V2.151 Cancellation of registration where a person ceases to be liable to be registered

Taxable supplies ceased/level of taxable supplies falling below VAT registration limit

Persons who has become liable to be registered (but is not actually registered) under VATA 1994, Sch 1, para 1 (see V2.135–V2.136) ceases to be liable to be registered if, at any time, they satisfy HMRC that, at that time1:

  1.  

    •     they have ceased to make taxable supplies, or

  2.  

    •     they have not exceeded:

  3.  
    1.  

      –     the prescribed registration limit (currently £85,000, for future changes, see V2.134 and for past prescribed limits, see 'UK taxable supplies—deregistration' in Tax tables and checklists) on a historical turnover basis (see V2.135)

    2.  

      –     the prescribed registration limit (currently £85,0002; for future changes, see V2.134 and for past prescribed limits, see 'UK taxable supplies—registration' in Tax tables and checklists) on a future turnover basis (see V2.136), and

    3.  

      –     the prescribed registration limit as a result of the acquisition of a business as a TOGC (see V2.137) (the prescribed limit is currently £85,0003; for future changes, see V2.134 and for past prescribed limits, see 'UK taxable supplies—registration' in Tax tables and checklists), or

  4.  

    •     at that time, they are not UK-established4 (although such persons are likely to be liable to register under VATA 1994, Sch 1A5, see V2.157)

In Satis6, the appellant was registered under VATA 1994, Sch 1, para 10 (entitlement to register – no taxable supplies made or to be made – see

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