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HMRC internal manual

VAT Registration

HM Revenue & Customs
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Voluntary registration: claw back of input tax: the intention to trade is abandoned

If the trader is unable to fulfil the original intention to trade and does not make a supply, there will be no requirement to repay any input tax deducted in relation to the intended taxable supply. However, output tax must be accounted for on the cost value of goods on hand at the time of deregistration.