Flow chart - VAT deregistration

You may be required to deregister for VAT or circumstances may allow you to do so. It can be favourable to remain registered or the opposite can be true. Either way it is important to understand what your options are in order to maximise VAT savings and avoid HMRC penalties.

Flow chart

The Flow Chart - VAT Deregistration will help you determine if you can or must deregister.

Definitions for the flow chart:

• Taxable supplies - any supplies of goods or services which are not exempt from VAT or outside the scope of VAT. Information about what counts as exempt can be found at https://www.gov.uk/guidance/vat-exemption-and-partial-exemption and https://www.gov.uk/vat-businesses/when-not-to-charge-vat for supplies which are outside the scope of VAT. HMRC’s VAT guide Notice 700 is at https://www.gov.uk/guidance/vat-guide-notice-700
• Distance sales - when a taxable person in the UK or one EU member state supplies and delivers goods to a customer in the UK or an EU member state and the customer is not registered for VAT or liable to be registered for VAT
• Relevant acquisitions - any goods (not services) you buy from a VAT-registered supplier in an EU member state to bring to the UK are relevant acquisitions.