Cancelling a VAT registration number

Produced by Tolley
Cancelling a VAT registration number

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 can a VAT registration be cancelled?
  • Compulsory cancellation
  • Voluntary cancellation
  • Specific transactions
  • Non-established taxable person
  • Distance selling (prior to 1 January 2021)
  • Excise duty goods
  • Relevant acquisitions (prior to 1 January 2021)
  • Relevant supplies
  • More...

This guidance note provides an overview of the procedure that should be followed if a business is either required or decides to cancel its UK VAT registration number. This guidance note should be read in conjunction with the Cancelling a VAT registration ― points to consider guidance note.

When can a VAT registration be cancelled?

A VAT registration number can be cancelled compulsorily or voluntarily depending on the circumstances.

Compulsory cancellation

A business will be required to cancel its VAT registration number in the following circumstances:

SituationDetails
The business ceases to make taxable suppliesIf the business ceases making supplies that are liable to VAT at the standard, reduced or zero rate, then it will be required to cancel its VAT registration number
VATDREG04100
The business is soldIf the business is sold or transferred to another party and the existing owner will cease making taxable supplies, the VAT registration number will either need to be cancelled or transferred to the new owner. Please see the TOGC ― overview guidance note for more information
The legal status changesIf the legal entity changes (for example a sole proprietor becomes a partnership or limited company), the business will either need to cancel its VAT registration number or request permission to keep the VAT number from HMRC.
If the business decides to cancel its existing VAT number and re-register for VAT, it will need to either use the online services or complete a form VAT 7 to cancel the existing number or complete a form VAT 1 to request a new VAT number. If it wishes to request permission to keep the existing number, it will need to complete a form VAT 68 and a form VAT 1. If the new business trades as a partnership, then it needs to complete a form VAT 2 or use the online service.
Please see the Overview ― registering for VAT and VAT registration procedure guidance notes for more information
VAT group is

Popular documents