When should you deregister?
- No Longer Reaching the VAT Registration Threshold: One common reason for VAT deregistration is when a business’s turnover falls below the VAT registration threshold. This can happen due to changes in your business operations or a decrease in sales.
- Business Closure, Change of Ownership, or Exiting a Market: If your business is closing its doors, undergoing a change in ownership, or exiting a specific market, VAT deregistration may be necessary.
- Change in Business Activity: If your business undergoes a change in its primary activities to the extent that it is no longer required to be VAT registered, deregistration is an option.
- Joining a VAT Group: When a company becomes part of a VAT group, it loses its individual VAT registration and must deregister as a separate entity.
- Exporting Goods or Services Outside the EU: If your business exports goods or services outside the European Union and qualifies for zero-rated VAT on these exports, VAT registration may no longer be required.