Stopping trading. How do I cancel my VAT registration ?

Your business has stopped trading, how do you go about cancelling your VAT registration?

You must cancel your registration if you’re no longer eligible to be VAT registered. For example, you have stopped trading or making VAT taxable supplies. You can cancel your VAT registration online or you can fill in and send form VAT7 to HMRC to cancel your VAT registration by post.

It usually takes 3 weeks for HMRC to confirm your cancellation and the official cancellation date. This is either the date when the reason for your cancellation took effect – for example, when you stopped trading, or the date you asked to cancel if it’s voluntary.

HMRC will send confirmation to your VAT online account (or through the post if you do not apply online). From the date of cancellation you must stop charging VAT and keep your VAT records for 6 years.

HMRC will automatically re-register you if they realise you should not have cancelled and you’ll have to account for any VAT you should have paid in the meantime. You’ll have to submit a final VAT Return for the period up to and including the cancellation date.

You must account for any stock and other assets you have on this date if: you could reclaim VAT when you bought them and the total VAT due on these assets is over £1,000.

Do not wait until you’ve received all your invoices before submitting your final return. You’ll still be able to reclaim VAT on anything you bought for your business while still registered once you get the invoices.

For more advice on your business VAT needs, please contact us.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

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