Cancelling a VAT registration number

Produced by Tolley

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

  • Cancelling a VAT registration number
  • When must a person deregister from VAT on a compulsory basis?
  • When can a person deregister from VAT on a voluntary basis?
  • Practical points to consider in relation to the cancellation of a VAT registration
  • Whether VAT registration on a voluntary basis may be more appropriate than cancelling the VAT registration
  • Whether prices will be adjusted if the VAT registration is cancelled
  • VAT on assets owned by the business at the end of the final day of VAT registration
  • Land and buildings
  • Land or buildings acquired in the context of a transfer of a going concern
  • Land or buildings on which VAT on the purchase cost was recovered
  • More...

Cancelling a VAT registration number

This guidance note provides:

  1. guidance regarding when a person must deregister from VAT on a compulsory basis

  2. guidance regarding when a person can deregister from VAT on a voluntary basis

  3. practical points to consider in relation to the cancellation of a VAT registration

For in-depth commentary on VAT deregistration please refer to De Voil Indirect Tax Service V2.151 to V2.155.

When must a person deregister from VAT on a compulsory basis?

The VAT registration ― voluntary guidance note explains when a person is entitled to be registered for VAT. A person who is registered for VAT and ceases to be entitled to be registered must notify HMRC within 30 days from the date they ceased to be entitled to be registered. HMRC can cancel the registration of a person who has ceased to be entitled to be registered for VAT, even if the person has not notified HMRC. A failure to notify HMRC may result in a penalty. If the reason the person is no longer entitled to be registered is because they have transferred their business as a going concern the VAT registration number may, subject to the agreement of the person acquiring the business and HMRC, be transferred to the person acquiring the business.

The request for the VAT registration number to be transferred should be submitted to HMRC using the form VAT68. In all other circumstances the VAT registration number must be cancelled, although HMRC may agree to a request for the deregistration to be

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