VATDREG08450 | Cancellation in particular cases: artificial separation of business activities (disaggregation)

Requests for deregistration on the grounds of a reduced turnover may sometimes result from a person artificially splitting their business activities into separate parts.

If you have any reason to suspect that this separation is a VAT avoidance measure, you must report the facts of the case to the appropriate contact point in your unit for further investigation. Do not proceed with deregistration unless or until you are satisfied that the original registered entity has genuinely split into two or more separate entities.

Once confirmation is received that the separation is legitimate, you may proceed with deregistration (subject to standard checks) from the date requested. However, if the separation is considered to be artificial (disaggregation), a Notice of Direction to register may be issued to the separated entities, subject to the guidance in VATDSAG07000.