VAT registration and deregistration

Dan22

Hi, could anyone shed some light on this please:
What would happen if I registered for VAT and bought goods without paying VAT on them, but didn't sell the goods that year.
Next year I cancelled my VAT registration and then sold the goods I bought earlier.
What would happen to the goods ? would I sell them without charging VAT as I am no longer VAT registered ?

Thanks.

antonic

Here is your answer to registering/deregistering

http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm#2

Hope this helps

Pennywise

You would have to repay the input VAT claimed on the goods you still had when you de-registered, unless the total VAT on them was small - about £1,000 if I remember rightly, so that makes £6,000 of gross value at 20% VAT.

Of course, you also face the risk of having to repay all input VAT claimed if you never started to trade at all, i.e. if HMRC think you registered only to reclaim the input VAT and not with the intention of trading.

chrismac1

Yes, it is £1,000 at the market value of the items on hand when you apply to de-register. Unless you can demonstrate some kind of trading, I reckon your chances are near zero - if whoever looks at your de-registration application is asleep is the reason your chances are not zero!