Commentary

V7.151 Reasons for voluntary VAT deregistration

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.151 Reasons for voluntary VAT deregistration

Part V7 Tax planning | Commentary

V7.151 Reasons for voluntary VAT deregistration

The main reasons why some businesses would be keen to deregister at the earliest opportunity are as follows:

  1.  

    (a)     the majority of sales are standard rated and are made to members of the public or to other businesses who are not VAT registered – in other words, VAT is an extra cost to these customers because they do not have the opportunity to reclaim input tax. In the case of sales to non-registered businesses, VAT would become an extra cost that they would treat as a business overhead. Remember, it is not just small

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