Key domestic legislation: Value Added Tax Act 1994, Sch 1, para 3
There are a number of reasons why UK VAT registered businesses deregister from UK VAT, and deregistration may be voluntary or compulsory. The main reasons for deregistering from UK VAT are as follows:
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•ÌýÌýÌýÌý No longer making taxable supplies.
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A business that, for example, ceases to make taxable supplies (see 55.29) but continues to trade making only exempt supplies must deregister. This is because a business that makes only exempt supplies has no right to be VAT registered.
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•ÌýÌýÌýÌý Business is sold as a transfer of a going concern.
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Where the whole of a business is transferred as a going concern, the seller must cancel its UK VAT number and select 'transfer of a going concern' as the reason for the cancellation.
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Web page updated on 24 Aug 2024 15:31