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News & Portal: VAT

VAT Notice 700/11: cancelling your registration

11 September 2020  
Posted by: HMRC
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Updated 21 August 2020 By HMRC

Contents

  1. Overview
  2. Basic information
  3. You’re registered because you make taxable supplies in the UK
  4. You’re registered because you make distance sales
  5. You’re registered because you make relevant acquisitions
  6. You’re registered because you make relevant supplies
  7. Business assets and stock on hand
  8. What will happen when you apply to cancel your registration
  9. Reclaiming VAT after your VAT registration was cancelled

Your rights and obligations

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1. Overview

This notice tells you when and how to cancel your VAT registration. It explains what to do if you’re currently registered for making:

  • taxable supplies in the UK (see section 3)
  • distance sales to customers in the UK who are not registered for VAT (see section 4)
  • relevant acquisitions of goods from VAT-registered customers in EU member states (see section 5)
  • relevant supplies of goods which are assets of a business (see section 6)

It explains the differences between compulsory and voluntary VAT registration cancellation.

The supplement to this notice gives details of the previous and current registration and cancelled VAT registration thresholds.

1.1 Who should read this notice

You should read this notice if you:

  • want to understand under what circumstances you must, or can ask to, cancel your VAT registration
  • are looking for information about what you need to do in order to cancel your registration

1.2 Areas of law covered by this notice

Schedules 1, 1A, 2, 3 and 3A of the VAT Act 1994 contain the provisions for cancellation of registrations.

Regulations 5(3) and 25(4) of the VAT Regulations 1995 provide the rules about notifying VAT registration cancellation and the final VAT Return.

1.3 Cancelling your registration online

You must cancel your registration if you’re no longer eligible to be VAT registered. You can cancel your registration online. Your agent can do this for you but you’ll still be responsible for the accuracy of the information. 

 

2. Basic information

2.1 If you make more than one type of supply

If you  Then
 make a combination of any of the following:  You cannot apply to cancel your VAT registration until you’re no longer liable to be registered for all the types of supply you make.
 If you   Then
taxable supplies,
distance sales,
relevant acquisitions,
relevant supplies
 See the appropriate section for each type of supply to decide whether you can cancel your registration.

2.2 If you are no longer liable to be registered

Whether you can remain registered depends on your circumstances.

If Then
 you stop making supplies or relevant acquisitions You’ll normally have to cancel your VAT registration.
 you continue to make supplies or relevant acquisitions below the relevant registration thresholds you can either, 
remain registered, or
cancel your registration voluntarily.

2.3 If someone takes over your business

 If you transfer your business as a going concern Then
 the new owner would like to keep your VAT registration number You need to cancel your VAT registration online. Select ‘transfer of a going concern’ as the reason for cancelling your VAT registration.

You’ll then be asked if the new owner wishes to keep the same VAT registration number. You must ensure that you tick ‘yes’ to this question.

Or you can complete the postal form VAT68, and send it to HMRC using the address shown on the form.
 the new owner does not wish to keep your VAT registration number You need to cancel your VAT registration online.Select ‘transfer of a going concern’ as the reason for cancelling your VAT registration.

You’ll then be asked if the new owner wishes to keep the same VAT registration number. You must ensure that you tick ‘no’ to this question.

Or you can complete the postal form VAT7 and send it to HMRC using the address on the form, indicating the reason for cancelling your VAT registration as ‘transfer of a going concern’ and that the new owner does not want to keep the VAT registration number.

 

2.4 If you change legal entity

 If youThen 
 change the entity of your business, for example from a sole proprietor to a partnership or limited company you do not want to keep your existing VAT registration numberYou can cancel it and apply for a new one in the name of the new legal entity.

You need to cancel your VAT registration online. Select ‘transfer of a going concern’ as the reason for cancelling your VAT registration.

You’ll then be asked if the new owner/legal entity wishes to keep the same VAT registration number. You must ensure that you tick no to this question.

A VAT1 Application for Registration in the name of the new legal entity is also required. This can also be completed on GOV.UK. You must ensure question 9 is completed and indicate that you do not want to take over and keep an existing VAT registration number.

Alternatively you can complete the paper form VAT7: application to cancel your VAT registration along with form VAT1: Application for Registration through the post. 
 Change the entity of your business, for example from a sole trader to a partnership or limited company you do want to keep your current VAT registration numberYou need to cancel your VAT registration online. Select ‘change of legal entity’ as the reason for cancelling your VAT registration.

You’ll then be asked if the new owner wishes to keep the same VAT registration number. You must ensure that you tick ‘yes’ to this question.

Alternatively, you can complete the paper form VAT68 Transfer of a business as a going concern – request for transfer of a registration number, and then send it to HMRC through the post to the address shown on the form.

A VAT1 Application for registration is also required in the name of the new legal entity. This can also be completed on GOV.UK. Ensure question 9 is completed and indicate that you ‘would like to take over and keep’ an existing VAT registration number. 

 

If your new legal entity is a partnership, you’ll also need to complete form VAT2: partnership details.

An option to tax on a property is not automatically transferred to the new legal entity even where the existing registration number is retained. As such, the new entity must opt to tax in their own right by completing form VAT1614A to tell HMRC about an option to tax land and buildings.

You can find more information in Who should register for VAT (VAT Notice 700/1); Transfer a business as a going concern (VAT Notice 700/9), and Opting to tax land and buildings (VAT Notice 742A).

2.5 If you're registered as a VAT group

 IfThen
 you disband the group the registered person will cease to exist, will need to cancel the registration by following the procedures in section 3.
 any member of the disbanded group is continuing to trade they must determine whether they’ll need to be registered in their own right - can find out more about this in Who should register for VAT (VAT Notice 700/1)
 a subsidiary leaves the group, the group consisted of only the representative member and that single subsidiarythe departure of the subsidiary will effectively disband the group, so the registration will need to be cancelled – can find more information in VAT Notice 700/2: group and divisional registration.

 

2.6 If you’re already VAT registered and intend to create or join a VAT group

A taxable person cannot have more than one active registration. So, when a group is created, its founder members will need to cancel their existing VAT registrations.

The group will be issued with its own registration number.

Any new member joining the group at a later date will also have to cancel its original registration.

If you’re a Non-Established Taxable Person (NETP), you cannot join a VAT group. For more information, see VAT Notice 700/2: group and divisional registration. If you’re not sure whether you’re an NETP, see Who should register for VAT (VAT Notice 700/1).

2.7 If you’re already VAT registered and intend to join the Agricultural Flat Rate Scheme

You cannot usually be registered for VAT and as a flat rate farmer at the same time, so you’ll have to cancel your VAT registration.

See the Agricultural Flat Rate Scheme (VAT Notice 700/46) for more information about:
  • registering as a flat rate farmer
  • the limited circumstances in which you might still be able to be VAT registered for other supplies

2.8 If your business activity involves supplies of land and buildings

 IfThen
you own land or buildings which you’ve opted to tax

you must include any income you receive from them when you’re calculating your taxable turnover.

you may be liable to pay VAT on them as assets on hand when you cancel your VAT registration.

 

2.9 If you use the Tour Operators Margin Scheme

There are special rules for determining your taxable turnover if you use the Tour Operators Margin Scheme. You can find more information in VAT Notice 709/5: tour operators margin scheme.

2.10 If you’re a barrister

There are special rules about accounting for your outstanding fees. You can find more information in VAT Notice 700/44: barristers and advocates.

2.11 If you’re an agent for other VAT-registered businesses

 IfThen
 you file your clients’ VAT Returns online,

you’re cancelling your VAT registration because you’re ceasing to trade
 remember to advise your clients that they’ll need to make other arrangements for filing their returns.
 you file your clients’ VAT Returns online,

you’re cancelling your VAT registration

you’ll be continuing to act as an agent for those clients (for example, because you’ll be trading under a new registration number)
 you’ll need to go through the online authorisation process again for each client.


If this would be impractical or very difficult, you may ask for help by writing to HMRC Deregistration Unit, Imperial House, 77 Victoria Street, Grimsby, Lincolnshire, DN31 1DB.

 

2.12 If you should not have cancelled your registration

The action HMRC takes in re-registering you for VAT will depend on the exact circumstances in which your registration was cancelled. If HMRC discovers that you supplied false or misleading information in order to cancel your registration, they’ll take action to re-register you. You’ll be responsible for accounting for any VAT due from the date of re-registration.

2.13 If you need to register again

You must let HMRC know promptly if you become liable to be registered again at any time in the future. There are penalties for failing to register at the proper time. Who should register for VAT (VAT Notice 700/1) will help you to decide whether you need to register.

2.14 If you are a non-established taxable person

If you are a non-established taxable person (NETP), the UK VAT registration threshold is not available to you. This means you must register for VAT if you make any taxable supplies in the UK. You cannot apply for voluntary VAT registration cancellation on the grounds of reduced turnover. If you are not sure whether you’re an NETP, see Who should register for VAT (VAT Notice 700/1) for more information.

3. You’re registered because you make taxable supplies in the UK

3.1 Compulsory VAT registration cancellation

If you’re registered because you make taxable supplies in the UK, you must cancel your registration if any of the following occur:

 If you registered becausethen
 you intended to make taxable supplies but you no longer intend to do soyou must cancel your registration. 
 you made, or intended to make, supplies outside the UK which
would have been taxable if made in the UK, or
are specified supplies
and you’ve stopped making or intending to make these supplies
 you must cancel your registration.
 you made, or intended to make, supplies of warehoused goods which were permitted to be disregarded for VAT and you’ve stopped making or intending to make these supplies you must cancel your registration.

3.2 Voluntary VAT registration cancellation

You can ask for voluntary VAT registration cancellation if any of the following occur:

  • you can satisfy HMRC that your taxable turnover in the next 12 months will not exceed the VAT registration cancellation limit
  • you close down part of your business and you satisfy HMRC that your taxable turnover for the remainder will not exceed the VAT registration cancellation threshold
  • your turnover exceeds the registration limit but your taxable supplies are wholly or mainly zero-rated – if you make any standard-rated supplies, you can only cancel your VAT registration voluntarily if your input tax normally exceeds your output tax – if these circumstances apply to you, you should write to the VAT Registration Service, HMRC, Benton Park View, Newcastle upon Tyne, NE98 1ZZ explaining why you think you should be exempt from registration

The supplement to this notice contains the current registration and cancel VAT registration thresholds.


If you’re requesting voluntary VAT registration cancellation on turnover grounds, you’ll need to tell HMRC why you think your turnover is going to fall below the VAT registration cancellation limit. You may, for example, have reduced your opening times, lost contracts, or changed your business practices. You should also tell HMRC what you expect your turnover will be in the following 12 months.

When you’re calculating your turnover, you should do it on a VAT-exclusive basis.

 ifthen
 your VAT-exclusive turnover is below the VAT registration cancellation limitHMRC may allow you to cancel your registration, providing, you can satisfy HMRC that you’ll stop charging VAT, or if you’re a retailer, you can satisfy HMRC that you’re going to reduce your prices by the VAT element. 
 HMRC is not satisfied that, you’ll stop charging VAT, or if you’re a retailer, you’ll reduce your prices by the VAT element HMRC will not agree to your request to cancel your VAT registration.

This is because, once VAT is added to the VAT-exclusive figure you calculated, your turnover will exceed the VAT registration cancellation threshold.

HMRC will not allow you to cancel your registration if the reduction in your turnover is the result of your intention to stop trading or suspend making taxable supplies for 30 days or more in the next 12 months.

3.3 How to cancel your registration
 
You can cancel your registration online or fill in postal form VAT7 and send it to HMRC using the address on the form. When you cancel your registration, you may have to account for VAT on any stocks and assets you have on hand. See section 7 for more information.

If you do not let HMRC know about any changes affecting your registration details within 30 days of them happening, you may be charged a penalty.

3.4 When you’ll have your VAT registration cancelled
 
If the cancellation of your VAT registration is compulsory, your registration will be cancelled from the date:
If you’re applying for voluntary VAT registration cancellation, you need to tell HMRC the date you want your registration to end. This can be:
  • the date HMRC receives your application
  • a later date HMRC agrees with you
You cannot cancel your registration from a retrospective date.

You should carry on charging and accounting for VAT until HMRC confirms that your registration has been cancelled.

If HMRC decides that you should stay registered, they’ll tell you. If you disagree with their decision, you can ask for a review. If you do not want a review or you do not agree with the review conclusion, you can appeal to an independent tribunal.


4. You’re registered because you make distance sales

For more information about distance selling, see Who should register for VAT (VAT Notice 700/1).

4.1 Compulsory VAT registration cancellation

 ifthen
you’re registered in the UK because you make distance sales from EU member states, and:
you stop making distance sales
you are not eligible or liable to register in the UK in respect of any taxable supplies, acquisitions or relevant supplies
you must cancel your registration
are registered in the UK because you intended to make distance sales but:
you no longer intend to do so
you are not eligible or liable to register in the UK in respect of any taxable supplies, acquisitions or relevant supplies
you must cancel your registration

4.2 Voluntary VAT registration cancellation

 If you're registered because youyou can apply to cancel your registration where
 have previously exceeded the distance sales threshold the value of your distance sales in the year ending 31 December did not exceed the threshold

and

the value of your distance sales in the year after that, beginning 1 January, will not exceed the threshold.
 had opted to make the UK the place of supply for your distance sales you’ve made supplies, and

you’ve been registered in the UK for at least 2 calendar years from the date of the first supply you made after you registered

or

you have not made any supplies.

4.3 If the goods you sell are subject to excise duty

You cannot cancel your registration, even if the value of your supplies of these goods is below the distance selling registration threshold. You can find more information in Who should register for VAT (VAT Notice 700/1).

4.4 How to cancel your registration

You can cancel your registration online or fill in postal form VAT7 and send it to HMRC using the address on the form. When you cancel your registration, you may have to account for VAT on any stocks and assets you have on hand. See section 7 for further information.

If you do not let HMRC know about any changes affecting your registration details within 30 days of them happening, you may be charged a penalty.

4.5 When you’ll have your VAT registration cancelled

When you apply for voluntary VAT registration cancellation, you need to tell HMRC what date you want your registration to end. This can be:
  • the date HMRC receives your application
  • a later date HMRC agrees with you
You cannot cancel your registration from a retrospective date.

You should carry on charging and accounting for VAT until HMRC confirms that your registration has been cancelled.

If you were registered because you had opted to make the UK the place of supply for your distance sales and you’ve made sales, your registration will normally be cancelled with effect from 1 January, 2 clear calendar years after your registration date.


5. You’re registered because you make relevant acquisitions

For more information about relevant acquisitions, see Who should register for VAT (VAT Notice 700/1)

5.1 Compulsory VAT registration cancellation

 ifthen
you’re registered in the UK because you make relevant acquisitions from EU member states, and:

you stop making relevant acquisitions

you are not eligible or liable to register in the UK in respect of any taxable supplies, distance sales or relevant supplies
 you must cancel your registration
you’re registered in the UK because you intended to make relevant acquisitions but:

you no longer intend to do so

you are not eligible or liable to register in the UK in respect of any taxable supplies, distance sales or relevant supplies
 you must cancel your registration

5.2 Voluntary VAT registration cancellation

 ifthen
you’re registered because you’ve previously exceeded the acquisition threshold

but

the value of your relevant acquisitions in the year ending 31 December do not exceed the threshold

and

the value of your relevant acquisitions in the next year, beginning 1 January, will not exceed the threshold.
 you can apply to cancel your registration.
 you registered voluntarily you’ll remain registered in the UK for at least 2 calendar years unless your entitlement to be registered has ceased.

5.3 How to cancel your registration

You can cancel your registration online or fill in postal form VAT7 and send it to HMRC using the address on the form. When you cancel your registration, you may have to account for VAT on any stocks and assets, see section 7.

If you do not let HMRC know about any changes affecting your registration details within 30 days of them happening, you may be charged a penalty.

5.4 When you’ll have your VAT registration cancelled

If you registered because you had exceeded the threshold, your registration will be cancelled from the date of application or an agreed later date.

If you registered on a voluntary basis, your registration will normally be cancelled with effect from 1 January, 2 clear calendar years after your registration date.


6. You’re registered because you make relevant supplies

For more information about relevant supplies, see Who should register for VAT (VAT Notice 700/1)

6.1 Compulsary VAT registration cancellation

 ifthen
you’re registered in the UK because you make relevant supplies,but:
you stop making relevant supplies
you are not eligible or liable to register with regards to any taxable supplies, distance sales or relevant acquisitions
 you must cancel your registration
 you’re registered in the UK because you intended to make relevant supplies, but:
you no longer intend to do so
you are not eligible or liable to register with regards to any taxable supplies, distance sales or relevant acquisitions
 you must cancel your registration

6.2 Voluntary VAT registration cancellation

You can apply to cancel your registration if all the relevant supplies you intend to make in the future will be zero-rated.

6.3 How you cancel your registration

If you’re a NETP, you can cancel your registration online or fill in postal form VAT7 and send it to HMRC using the address on the form.

If you do not let HMRC know about any changes affecting your registration details within 30 days of them happening, you may be charged a penalty.

When you cancel your registration, you may have to account for VAT on any stocks and assets, see section 7 for further information.

6.4 When you’ll have your VAT registration cancelled

 ifthen
your VAT registration cancellation is compulsory the date you stopped making, or stopped intending to make supplies.
you cancel your registration voluntarily the date of application, or a later date which you’ve agreed with us.

 

7. Business assets and stock on hand

7.1 What you have to do about your stocks and assets

When you cancel your VAT registration, you usually make what is known as a deemed supply of the goods you have on hand.

This means you may have to account for VAT on some of your business assets and stock on hand, depending on:

  • what they are
  • how you obtained them
  • why you’re cancelling your registration

You will not have to account for VAT if the total VAT due on the assets would be £1,000 or less.

7.2 What you must include

You must include assets such as:

  • interests in land (but only if they would be taxable if you sold them, for example, where an option to tax has been made)
  • tangible goods (for example, unsold stock, plant, furniture, commercial vehicles, computers) on which you claimed VAT when you bought them

You do not have to include intangible assets such as patents, copyrights and goodwill.

 If you obtainedyou must
 goods VAT free as assets of a business which was transferred to you as a going concern by a taxable person account for VAT on them
 land or buildings as assets of a business transferred to you as a going concern. account for VAT on them if you’ve opted to tax.

You’ll often have to opt to tax in order to receive land and buildings as part of a transfer of a going concern.

You can find more information in Transfer a business as a going concern (VAT Notice 700/9).

7.3 What you can exclude

You do not have to account for VAT on any items on which you did not claim VAT when you bought them. Examples include:

  • goods you bought from unregistered businesses or private individuals
  • cars (except private taxis, self-drive hire cars and driving school cars on which input tax has been claimed)
  • goods you bought under a VAT margin scheme
  • goods you’ve used wholly for business entertainment
  • goods which you’ve directly attributed to an exempt business activity (unless some input tax relating to these goods was reclaimable through the partial exemption rules)
  • land or buildings which you obtained free of VAT, even if you’re using them to make standard-rated supplies (such as holiday accommodation or because you’ve opted to tax the property)
  • goods you did not buy for business purposes
7.4 If you’ve made an option to tax

If you’ve opted to tax any land or buildings, you may have to account for VAT at the time of VAT registration cancellation.

See Opting to tax land and buildings (VAT Notice 742A) for more information about options to tax, including:

  • how to revoke an option to tax
  • anti-avoidance rules
  • exclusions from the effect of an option to tax
If you sell the opted land or property, VAT may be due on the sale price, subject to transfer of a going concern criteria, as set out in Transfer a business as a going concern (VAT Notice 700/9).

 ifthen
 you’ll be keeping the land or property, and you claimed input tax when you bought it you’ll be making a deemed supply of it at the time of cancelling your registration.
this means you’ll need to account for VAT on the land or property’s current market value.
 you’ll be keeping the land or property, and you did not claim input tax when you bought it VAT does not become due until the land or property is sold during the life of the option to tax.
this means that you will not have to account for VAT on it when you VAT registration is cancelled.

7.5 If you’re transferring your business as a going concern or changing your legal status

 if youthen
 transfer your business as a going concern or change its legal entity and the new owner is registered for VAT you must not charge VAT on the assets.
 transfer your business as a going concern to someone who is not registered for VAT you must account for the VAT on your assets on hand at the time of transfer in the normal way.

7.6 If you’re joining the Agricultural Flat Rate Scheme

If you’re cancelling your VAT registration so that you can join the Agricultural Flat Rate Scheme, you do not need to account for VAT on any of your business assets.

7.7 If you have items under the Capital Goods Scheme

If you own any capital items when you cancel your registration, you may, because of the rules about deemed supplies (see paragraph 7.1), have to make a final adjustment in respect of any items which are still within the adjustment period. You should make this adjustment on your final return. If you’re in any doubt about whether or not you have to make an adjustment, you should contact the HMRC VAT Helpline.

You can find detailed information about the capital goods scheme in VAT Notice 706/2: Capital Goods Scheme.

7.8 How to work out how much VAT is due

You should normally value your land or goods at the price you would expect to pay for them, or for similar land or goods, in their present condition.

If you cannot work this value out, you should value the goods at the price it would cost to produce them at the time your registration is cancelled.

Remember:
  • if the total VAT on the assets to be included is £1,000 or less, no VAT is due
  • this means that, if the assets you have to include are all standard-rated (20%), you do not have to account for VAT if their total gross (VAT inclusive) value is £6,000 or less
  • if the total gross value is more than £6,000, you must account for VAT on all the goods you have on hand on your final VAT Return
  • you may incur a financial penalty if you underdeclare the VAT due on your final VAT Return

7.9 If you’re partly exempt

 ifthen
 you're partly exempt your final adjustment period (your VAT registration cancellation period) will run.

from the day following your last full tax year.

to your date your VAT registration was cancelled.
 you have not incurred any exempt input tax,

in your previous tax year, or

where applicable, in the registration period immediately preceding your cancellation of VAT registration period
 your final adjustment period will run.

from the first day of the accounting period in your final tax year in which you first incur exempt input tax.

to the date your VAT registration was cancelled.

For more information, see VAT Notice 706: partial exemption.

7.10 If you use a retail scheme

If you use a retail scheme, you must follow the rules for stocks and assets explained in the particular notice for your scheme or in VAT Notice 727: retail schemes about ceasing to use a retail scheme.

You must always tell HMRC in advance if you intend to:

  • change the legal entity of your business (for example, if you’re a sole proprietor and you take on a partner)
  • sell all or part of your business to a new owner
7.11 If you use the cash accounting or annual accounting schemes

There are special rules if you use either of these schemes. You’ll find more information in VAT Notice 731: cash accounting and VAT Notice 732: annual accounting.

7.12 If you pay on account

If you’re required to make Payments on Account (POA) you must continue to make POA instalments until HMRC confirms cancellation of your VAT registration, so that you avoid the risk of incurring default surcharge. As an alternative to POA, you may opt to pay the actual monthly amount due. For further information you should refer to VAT Notice 700/60: payments on account.


8. What will happen when you apply to cancel your registration

8.1 What HMRC will do when we get your application

HMRC will send you a reply within 30 working days. If you’ve not heard from them by then, you should contact VAT general enquiries.

If HMRC is satisfied that your registration should be cancelled, they’ll send you a formal notice confirming the date on which your VAT registration was cancelled.

This will become part of your VAT records and you must keep it, along with all your other VAT records, for 6 years. (You can find more information about your obligation to keep records in VAT Notice 700: the VAT guide.)

You must also keep a list of all the business assets you have on hand on the date you cancelled your VAT registration and the value of each, even if they are not liable for VAT.

You must stop charging VAT on your taxable supplies from the date of your VAT registration was cancelled.

8.2 Completing your final VAT Return

Unless your VAT registration number is being transferred to someone who’s taking over your business as a going concern, you’ll need to submit a final VAT Return.

Everyone must submit a final VAT Return by the date it’s due. In some cases the final return may be for a very short period - perhaps even as short as one day. You must finalise your VAT accounting declarations after your ordinary VAT Returns, making sure that any outstanding VAT is accounted for in full. Make sure you include any VAT due on stocks and assets. If there is no VAT due, complete the form as nil.

Contact HMRC before completing your final return if you’ve already accounted for all or part of the VAT due on your normal return form.

Do not delay submitting your final return until you’ve received all your purchase invoices. You’ll be able to make a claim for input tax on form VAT427: reclaim or claim VAT relief on cancelling VAT registration later if you receive invoices after you’ve submitted the return. (See section 9).

HMRC may want to visit you to make sure that you’ve accounted for the full amount of tax.


8.3 You cannot continue to send VAT invoices after you’ve cancelled your VAT registration

You must not:

  • charge VAT or issue VAT invoices for any supplies you make after the date your VAT registration was cancelled
  • issue any invoices which show your VAT registration number – contact HMRC if you want to use up your stock of invoices and cross out your registration number

If your customers:

  • issue VAT invoices on your behalf under self-billing arrangements
  • prepare authenticated receipts for you to send

you must tell them immediately that:

  • you are no longer registered
  • they must not charge VAT on any further supplies you make

You may be liable to a financial penalty if you issue a VAT invoice or a VAT-inclusive authenticated receipt for supplies you make after your registration has been cancelled.


9. Reclaiming VAT after your VAT registration was cancelled

9.1 You can claim the VAT back on supplies you’ve received while you were registered

You can claim the VAT back as long as:

  • you have not already claimed it on a VAT Return
  • you hold the proper evidence

If you were subject to some restriction in recovery of input tax (for example, because you made exempt supplies or had non-business activities), you must apply the same restriction to your claim.

You cannot claim for:

  • VAT on goods you buy after your registration is cancelled
  • VAT you were charged more than 4 years ago

9.2 Claiming VAT back on services you received after your VAT registration was cancelled

In some circumstances you can claim VAT back on services you’ve received after your VAT registration was cancelled.

You can claim the VAT back if the services were connected with your taxable business activities. For example, you may have been charged VAT on the services of a solicitor or an accountant.

If you were subject to some restriction in recovery of input tax (for example, because you made exempt supplies or had non-business activities), you must apply the same restriction to your claim.

You cannot claim input tax you were charged more than 4 years ago.

9.3 Services connected with exempt supplies

You cannot claim back VAT on services which were supplied to you after your VAT registration was cancelled in connection with exempt supplies. This is because the partial exemption de minimis limits do not apply to tax incurred after cancellation.

If you think you may incur VAT on the disposal of exempt business assets, you can ask HMRC to delay cancelling your registration for up to 6 months. You can contact the HMRC VAT Helpline or you can write to VAT office.

9.4 Bad debt relief

You can claim relief on bad debts you identify after you’ve cancelled your VAT registration, provided you:

No claim can be made more than 4 years from the date when the relief became claimable. There is no entitlement to a refund where the date of the supply fell on or before 30 September 2005.

9.5 How to claim

You need to fill in a form VAT427: reclaim or claim VAT relief on cancelling VAT registration. Send the completed form and the original invoices to the address shown on the form.

You should submit the claim as soon as possible after you cancelled your VAT registration. If your business bank account has been closed, any payment due to you could be delayed.

9.6 Dissolved and struck-off companies

Once a company has been dissolved or struck off the register at Companies House, it ceases to exist. It is very important that you make sure the company’s affairs are settled before it is dissolved so that HMRC can repay any VAT to you.

Your rights and obligations

Read Your Charter to find out what you can expect from HMRC and what we expect from you.

 

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If you have any feedback about this notice please write to:

HM Revenue and Customs
Indirect Tax Process Team
1st Floor, Regian House
James Street
Liverpool
L75 1AD

If you need general help with this notice or have another question contact us.


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If you’re still unhappy, find out how to complain to HMRC.


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