Register for VAT

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Cancel your registration

You must cancel your registration if you’re no longer eligible to be VAT registered. For example:

  • you stop trading or making VAT taxable supplies
  • you join a VAT group

You must cancel within 30 days if you stop being eligible or you might be charged a penalty.

If your taxable turnover falls below £88,000 you can ask HM Revenue and Customs (HMRC) to cancel your registration, unless all of the following are true:

  • you and your business are based outside the UK
  • you supply any goods or services to the UK (or expect to in the next 30 days)

If you have an EORI number

HMRC will automatically cancel your Economic Operators Registration and Identification (EORI) number at the same time as they cancel your VAT registration.

Find out what to do if you still need an EORI number, and to keep using authorisations or licences.

When you do not need to cancel

You do not need to cancel your VAT registration if:

Cancel online

You can cancel your VAT registration online if:

  • you’ve stopped trading and you’re not part of a VAT group
  • your taxable turnover is below £88,000
  • you’ve stopped making VAT taxable goods or services
  • you’re applying for an exemption if most or all of what you sell is VAT zero-rated

To cancel your VAT registration online, you’ll need your Government Gateway user ID and password.

Start now

When you cannot cancel online

You must cancel by post if:

  • your legal status has changed and you want a new VAT registration number
  • you’ve sold your business and the owner is not keeping the VAT registration number
  • your VAT group is closing (‘disbanding’) - you’ll also need to complete a VAT50-51 form and send both forms together to HMRC
  • your business stopped trading after liquidation

Cancel your registration by post using form VAT7.

You’ll need to fill in the form fully before you can print it. You cannot save a partly completed form.

Print and send your completed VAT7 form with any other completed forms to HMRC. The address to send it to is in the form.

What happens next

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect (for example, when you stopped trading), or the date you asked to cancel.

HMRC will send confirmation to your VAT online account or through the post if you do not apply online.

You must stop charging VAT from the cancellation date. You’ll need to keep all VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled. You’ll have to account for any VAT you should have paid in the meantime.

VAT after you cancel

You’ll have to submit a final VAT Return for the period up to and including the cancellation date.

You must account for any stock and other assets you have on this date if both of the following apply:

  • you reclaimed or could have reclaimed VAT when you bought the assets
  • the total VAT due on these assets is over £1,000

You must submit your final return within one month of the cancellation date, unless you are on the Cash Accounting Scheme.

If you’re on the Cash Accounting Scheme, submit your final return within 2 months of the cancellation date.

Do not wait until you’ve received all your invoices before submitting your final return. When you get them you’ll still be able to reclaim VAT.

View a printable version of the whole guide

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