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HMRC internal manual

VAT Deregistration

Eligibility or requirement to deregister: schedule 2 - distance-selling: eligible to deregister

A person is eligible to deregister if they meet the conditions shown below:

If
  • they were required to register under Schedule 2, paragraphs 1(1), 1(2) or 1(3) and 
  • they cease to make relevant supplies  then they are eligible to deregister
       
      If
  • they were registered as a result of notifying an intention under Schedule 2, 4(1) to make taxable supplies and 

    • they have not begun to make relevant supplies, or
    • they have not exercised the option referred to in Schedule 2, 1(2), or 
    • they have not begun to make any supplies referred to in Schedule 2, 1(3)  then they are eligible to deregister
        If
  • they were required to register under Schedule 2, 1(1)
  • the value of the relevant supplies falls below the distance selling threshold
  • any option referred to in Schedule 2, 1(2) has been revoked in the member state of origin, and
  • they do not make any supplies referred to in Schedule 2, 1(3)  then they are eligible to deregister as long as 
  • they have not made relevant supplies exceeding the distance-selling threshold in the previous calendar year ending on 31 December, and
  • they will not make relevant supplies exceeding the distance-selling threshold in the current calendar year beginning 1 January.