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HMRC internal manual

VAT Deregistration

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

A person is required to deregister in the circumstances shown below:

A person who is registered because they make distance sales from other EU Member States must cancel their registration if they
  • stop making distance sales

    and 

  • are not eligible or liable to register in the UK in respect of any taxable supplies, acquisitions or relevant supplies     
         
      A person who was registered as a result of notifying an intention under Schedule 2, paragraph 4(1), to make relevant supplies must cancel their registration if any of the following applies
  • they have not begun to make relevant supplies
  • they have not exercised the option referred to in Schedule 2, paragraph 1(2)
  • they have not begun to make any supplies referred to in Schedule 2, paragraph 1(3). 
If the person has exercised the option referred to in Schedule 2, paragraph 1(2) then they must remain VAT registered for the remainder of the calendar year of registration and for a further two full calendar years unless they meet one of the following conditions (as specified in Sch. 2, 7(3))
  • they revoke their option in the member state of origin
  • they were not registerable under Schedule 2
  • they did not in fact have the intention to make distance sales
  • they had not made any distance sales by the date specified in the application
  • they have contravened any condition of the registration