VATDREG09100 | Values of supplies and acquisitions: future turnover

VAT Act 1994, Schedule 1, paragraph 4(2) provides that we should refuse applications for voluntary deregistration where the trader’s turnover will be below the deregistration threshold in the next 12 months because they intend to either

• cease trading, or

• suspend trading for a period of 30 days or more (for example seasonal trading).

In these circumstances, we should usually only consider deregistration when taxable supplies actually cease. However, if the trader’s turnover would be below the deregistration threshold regardless of the cessation or suspension of trade, we can cancel the registration.