VATREG40750 - Registration in respect of acquisitions from other Member States: post-registration action at visits
Voluntary registrations under Schedule 3 should be treated with caution because the registered person can not recover any input tax.
Businesses should be examined to confirm that they continue to fulfil the Schedule 3 registration requirements, or whether they have ever fulfilled these requirements. Any input tax claims should be examined closely.
Where a person has been admitted to the register under the VAT Act 1994, Schedule 3, but it is later found that their activities have changed or are incompatible with the requirements of this schedule, the procedures detailed in section 68 should be followed.