VATREG25370 - VATREG25370 - Change of EDR in cases of Voluntary Registration

There is no legal provision to amend an EDR once registered. A person registering for VAT must be fully aware of the implications and legal obligations of being registered. This includes accounting for VAT from the agreed date and being aware of the time limits relating to recovery of pre-registration VAT. We cannot amend an EDR solely due to a mistaken liability resulting from the chosen EDR.

However, there is leeway to retrospectively amend an EDR in exceptional circumstances. We may accept a request in these circumstances when it would be unreasonable not to do so. This is covered by the general provision of Sch 11(1) VATA 1994 which allows HMRC to take the action required for the collection and management of VAT.

A rejected request to amend under collection and management provisions does not carry a right of appeal.

An important notion to consider is that traders should have charged VAT from their EDR. Any change to the EDR will present difficulties with accounting procedures and may lead to the possibility of unjust enrichment. When assessing an EDR request, the test of any decision is that it is reasonable and proportionate in all the circumstances of the case.

It is important that you:

  • look at each case on its own merits
  • take account of all the relevant factors
  • don’t allow irrelevant factors to prejudice your judgement
  • weigh the impact (if any) granting the request would have on overall tax position against the impact refusing the request would have on the trader’s business.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Additionally, there will be circumstances in which you need to correct an EDR (rather than change an EDR at the trader’s request). These will occur when:

  • there has been an element of Departmental error with regard to the EDR when the trader’s application was originally processed, or,
  • we became aware that a trader should be registered from an earlier date.

It is important to ensure that there are no doubts as to the EDR requested by the trader when processing VAT 1 applications. As outlined in VATREG25200, contact the trader if any information regarding the EDR needs clarification. The importance of this approach has been highlighted by the tribunal cases of AJ & AE Rowe t/a Arthurs (LON/95/423A), Simon Damels and Stuart Stevenson trading as Homeforce (LON/02/58), and Yee Mei Yeung (MAN/02/405) which the Department lost.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

 If external users wish to change their EDR, contact details can be found here.