VATDREG06000 - Failure to notify that taxable activity has ceased

We can cancel the registration of a person who has ceased to make taxable supplies even if they have not notified us as required. For example, a visiting officer may let you know that they are satisfied that taxable activity has ceased and that cancellation is appropriate. In these circumstances, it is not essential to obtain an application for deregistration from the trader. However, the officer should provide all the details you need, including the reason for and date of cessation, so that you can cancel the registration.

A registered person who fails to provide notification may be subject to a penalty under Section 69 of the VAT ACT 1994 for failure to notify cessation of taxable supplies. Penalties are the policy responsibility of Central Policy - Tax Administration Advice. The team’s contact details are available on their intranet homepage. Guidance on the breach of VAT regulatory provisions under section 69 penalties can be found in VCP11100.

If you are considering taking action under this paragraph, you should take into account any remaining goods. Where

• the trader still has some goods on hand, and
• satisfies you that they intend to sell them

they are still entitled to be registered so we should not cancel their registration.

In the case of remaining fixed or capital assets, deferment of compulsory deregistration may be appropriate (see VATDREG13000).