VATDREG04500 - Schedule 9ZA - Acquisitions
A person must notify HMRC within 30 days of ceasing to make, or intending to make, relevant acquisitions. The term ‘relevant acquisitions’ is defined in paragraph 47 of Schedule 9ZA.
If HMRC is satisfied a person is no longer registerable, it may cancel their registration from the date they ceased making relevant acquisitions or from a later date as agreed with the person - paragraph 43(2).
The term ‘registerable’ is defined in paragraph 43(9) as a person who is neither liable nor entitled to be registered. This means HMRC can only compulsorily deregister a person who is not making, and does not intend to make, relevant acquisitions.
Voluntary deregistration
A person may request deregistration if HMRC is satisfied all the following apply:
• they did not exceed the acquisition tax threshold in the previous calendar year ending on 31 December
• they will not exceed the acquisition tax threshold in the current calendar year beginning 1 January
• there are no reasonable grounds to believe the value of relevant acquisitions will exceed the acquisition tax threshold in the next 30 days alone.
However, if the person:
• was voluntarily registered under paragraph 41(1), or
• was registered based on an intention to make relevant acquisitions under paragraph 41(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 9ZA part 8
• they did not genuinely intend to make relevant acquisitions
• no relevant acquisitions were made by the date specified in the application
• they have contravened any condition of the registration