VAT deregistration

VAT deregistration

There are a number of reasons why a business may wish or be obliged to cancel its VAT registration. The main reasons for doing so are as follows:

1.  

   •     Turnover falls below the VAT deregistration threshold (see 10.1).

2.  

   A business in this situation can choose whether to continue with its VAT registration or cancel its VAT number.

3.  

   •     Change of legal status.

4.  

   This can happen, for example, where:

5.  
   1.  

      –     a sole trader takes on a partner;

   2.  

      –     a sole trader or partnership decides to form a company; or

   3.  

      –     one of the partners