VATDREG01200 - Introduction: the VAT register
A person who becomes liable to
register for VAT, or chooses to register voluntarily, must do so under a
specific schedule of the VAT Act 1994. The rules governing how and when to
register for VAT are available in VAT
Notice 700/1
Each registration schedule outlines the conditions under which a person must
cancel its VAT registration or may choose to do so voluntarily. Further details
can be found in VAT
Notice 700/11
If a person no longer meets the conditions for registration under their current
schedule, their VAT registration must not be cancelled if they remain liable
under another schedule. In such cases, the registration continues seamlessly,
transitioning to the appropriate schedule. Further guidance can be found
in VATREG32150
This manual uses the term ‘deregistration’ to refer to the cancellation of a
VAT registration. However, it’s important to note that this term does not
appear in legislation or official HMRC guidance.
While the concept of deregistration is generally straightforward, certain scenarios require more detailed consideration. The following sections provide guidance to support consistent application of the rules in line with HMRC’s accepted interpretation:
•
Compulsory and voluntary deregistration
• Effective date of cancellation
• Deregistration in error
• Specific case scenarios
• Insolvency
• Failure to notify
• Deemed supplies, including stock and land/buildings