VATDREG04300 - Eligibility or requirement to deregister: schedule 3 - acquisitions: eligible to deregister
A person making relevant acquisitions is eligible to deregister, subject to certain conditions.
Condition
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.
Condition
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