vat deregistration

VAT Deregistration-A Comprehensive Guide to Cancelling VAT Registration

Are you someone owning a business or some related organization looking to cancel VAT registration? Or whether you want to relieve yourself from some unnecessary burdens?

No worries, you are at the right place; proceed with this article because this comprehensive guide will go through the necessary details related to Value Added Tax (VAT) deregistration. From the threshold of VAT deregistration to their helpline, we will cover all complexities leaving no room for any queries.

Before proceeding into VAT Deregistration process, If you're new and want to register for vat, Read our comprehensive step by step guide that How to register for VAT.

When Should A Business Consider VAT Deregistration?

Deregistration of VAT is an essential decision regarding your business that should be taken on time. So, whether you should consider deregistration or not, you should first consider the following factors:

  1. Cessation of Business Operation

    In case your business or organization is about to shut down permanently, no matter its reason, there is no reason for you to be registered under VAT. It would help if you unregister from VAT immediately.

  1. Turnover Falling Below a Certain Threshold

    If the turnover of your business falls below a specific limit or threshold, you should consider deregistration immediately. If your company does not fall into the category of some taxes, why should you waste your assets covering something which isn't even necessary?. In the United Kingdom, the turnover for VAT deregistration threshold is currently set at £83,000.

  1. Change in the Structure of Your Business

    If there is any change in the structure of the business, consider the deregistration of VAT. Why so? For instance, believe that the ownership of your business agency has been changed or transferred to some other authority, VAT registration may be cancelled, or it should be transferred to the person currently on hold of the business.

    Apart from all these, if your business stops making taxable supplies, you should consider cancellation of VAT registration. Considering all these factors can lead to saving your time and money.

The Limit And Threshold Of VAT Deregistration

As mentioned above, in the United Kingdom, the turnover for VAT deregistration threshold is currently set at £83,000, so if your business has unfortunately suffered a downfall or doesn't fit the criteria mentioned above, you are exempted from paying VAT taxes. You should unregister yourself from VAT immediately if you are falling within the VAT deregistration limit, as paying unnecessary taxes doesn't benefit you.

Steps To Deregistration of VAT

The VAT deregistration process is smooth and relatively simple, with no hurdles. You must consider cancelling your registration anytime if you do not fulfil the eligibility criteria. Fortunately, His Majesty's Revenue & Customs (HMRC) enables you to unregister online using the VAT7 form (cancel VAT registration form).

  1. The online method of Deregistration

    If you are considering using the online method, you must have a Government Gateway user id; without that, it is impossible to avail of the online method.

  1. Using the VAT 7 form or the cancel VAT registration form

    The alternative way is to use the VAT7 form or VAT deregistration form. You need to fill out the form and follow by printing it. After you have printed the form, post it to the HMRC. Before printing, you must complete it, so it is advised to learn the basic information required. And one thing more, you must use a newer browser version; older versions like Internet Explorer 7 and 8 will not work.

Things To Consider Before Cancelling Your VAT Registration

Being a businessman If you want to avoid any unexpected consequences after unregistering yourself from VAT, there are some basics things that need your attention:

cancellation of vat registration

  1. VAT Deregistration Assets

    As we have already discussed, unregistering yourself from VAT is a decision not to be made in a hurry; you should consider the treatment of your assets while making the decision. This decision involves determining which assets have been subjected to VAT and how they will be treated or handled post-deregistration.

    Some assets may be transferred or kept within the business, while others should be subject to getting rid of.

  1. Taking International trade into consideration

    Suppose your business is involved in international trade and has already been registered for VAT. In that case, registering on VAT may significantly impact how you handle cross-border transactions.

    A business person with keen insight like yourself will carefully assess deregistration's possible impact on your imports or exports. Considering this might save you some time and protect you and your company from the risk of many unnecessary conflicts.

    Also Read, How To Calculate VAT Returns - Guide for Small Businesses.

  1. Impact on Customers and Suppliers

    It is essential to assess the impact deregistration of VAT might have on both your consumers and suppliers. It would be best if you kept in mind that some consumers prefer VAT-registered businesses and products. The reason is that they can reclaim VAT on their purchases. So, now it is up to you to decide how sensitive your customers are and whether VAT registration affects them.

    If your products and goods suppliers are registered to VAT, VAT will be included in the goods you purchase from them. The probable outcome is that you will be overcharged as you will be unable to reclaim VAT. So, consider talking to your suppliers and deciding whether deregistration suits your terms.

  1. VAT Deregistration Helpline

    HMRC decided to discontinue its VAT registration helpline. However, you can still contact or email them at the main VAT helpline.

    VAT Helpline: 03002003700

    Email: [email protected]


For a business no longer meeting the criteria mentioned above for VAT registration, VAT deregistration is a significant step that shouldn't be taken with any hassle. Considering all the possible outcomes of unregistering your business from VAT is important. Considering your impact on suppliers, consumers, imports, and exports is obligatory.

If the merits you seek exceed deregistration's demerits, you should proceed. We are here to assist you to know the potential risks and the benefits. Now what decision you should make depends solely on you and your staff.


What is the turnover limit for VAT returns?

You can do a voluntary registration for VAT in case your turnover is lower than £85,000. Once registered on VAT, you must pay VAT if you owe any to HM Revenue and Customs ( HMRC ). But if the product and services you sell are exempted from VAT, you do not need to register for VAT.

How do I deregister VAT in Ireland?

You need to contact the Revenue Office if you want to deregister VAT or cancel VAT registration, failing which can lead to more issues. However, the Revenue can cancel your VAT registration if your registration is inappropriate.

Rían Doyle

I'm a VAT professional with years of experience helping businesses with compliance and reporting. My goal is to simplify VAT calculation and provide valuable insights through my engaging writing style and clear explanations of complex concepts.