The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.
This guidance note provides an overview of certain specific points that need to be considered by a business that is intending to cancel its VAT registration number. This note should be read in conjunction with the Cancelling a VAT registration number guidance note.
Detailed information on cancelling a VAT registration number can also be found in HMRC Manual VATDREG01000.
If a business has stock and business assets on hand at the time it cancels its VAT registration number, then it may be required to account for VAT on the value of those assets on its final VAT return.
A business will not be required to account for any VAT if the total VAT due on the stock / business assets is £1,000 or less.
If the VAT due on the assets / stock exceeds the de minimis limit, the business will need to consider the following:
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