Commentary

V7.156 Compulsory VAT deregistration—ceasing to trade

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.156 Compulsory VAT deregistration—ceasing to trade

Part V7 Tax planning | Commentary

Compulsory deregistration

V7.156 Compulsory VAT deregistration—ceasing to trade

The examples illustrated above considered situations where a taxable person 'may' request deregistration – in other words, he or his adviser has identified that he is entitled to exit the VAT system, and it is in his best interests to do so.

There are other circumstances where deregistration is compulsory, ie the business 'must' cancel its VAT registration.

The obvious situation is where a business has ceased to trade. Another situation where deregistration is compulsory is where a business continues to trade but now only makes exempt supplies. The effective date of deregistration

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