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HMRC internal manual

VAT Deregistration

Eligibility or requirement to deregister: schedule 3 - acquisitions: eligible to deregister

A person making relevant acquisitions is eligible to deregister, subject to certain conditions.

If the person
  • was required to register under Schedule 3, paragraphs 1(1) or 1(2) and 
  • they cease to make relevant acquisitions, or 
  • the value of the relevant acquisitions falls below the acquisition tax threshold  then they are eligible to deregister

as long as

  • they have not made relevant acquisitions exceeding the acquisition tax threshold in the previous calendar year ending on 31 December and 
  • they will not make relevant acquisitions that will exceed the threshold in the current calendar year beginning 1 January and
  • there are no reasonable grounds for believing the value of relevant acquisitions will exceed the acquisition tax threshold in the following 30 days alone.   
      If the person
  • was voluntarily registered as making relevant acquisitions under Schedule 3, paragraph 4(1), or
  • was registered as a result of notifying an intention under Schedule 3, paragraph 4(2), and
  • they have not subsequently become required to be registered  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:
  • they were not registerable under Schedule 3, or
  • they did not in fact have the intention to make relevant acquisitions, or
  • they had not made any relevant acquisitions by the date specified in the application, or
  • they have contravened any condition of the registration