How do I voluntarily deregister from VAT?
Answered 11 March 2026
Here is a comprehensive answer on how to voluntarily deregister from VAT:
Voluntary VAT Deregistration
What the law says
HMRC must cancel a person's VAT registration upon request if it is satisfied that either:
- The person is not, and has never been, liable to register for VAT (i.e. they registered voluntarily), or
- They continue to make taxable supplies but can demonstrate that the value of those supplies in the next 12 months will fall below the deregistration threshold
The value of supplies does not need to already be below the threshold at the time of application — but the person must provide credible evidence and justification for the anticipated drop in turnover, including behavioural trends, business forecasts, and relevant documentation. Hindsight cannot be used to support retrospective deregistration.
A person making only paragraph 10(2) supplies (e.g. supplies made outside the UK that would be taxable if made in the UK, or supplies under SI 1999/3121) may deregister at any time, regardless of the value of those supplies.
Appeals against a refusal to deregister or against the effective date of cancellation may be made under Section 83(1)(a) of the VAT Act 1994.
HMRC guidance / practice
How to apply: You can apply for voluntary deregistration in one of two ways:
- Online – via HMRC's online services; or
- By post – by completing form VAT7 (Application to Cancel your VAT Registration) and sending it to: BT VAT, HM Revenue and Customs, BX9 1WR
Effective Date of Cancellation (EDC):
- The EDC will be the date the request was made, or a later agreed date — it cannot be retrospective.
- Registration ceases at midnight on the day preceding the EDC. For example, if the EDC is 1 October, the last day of VAT registration is 30 September.
- After the EDC, you cannot charge VAT or recover input tax on supplies made.
After deregistration:
- You must submit a final VAT return and pay any tax due, usually within one month and seven days from the EDC (or the day HMRC confirms the EDC, whichever is later).
- Different timescales may apply if you are on the Cash Accounting Scheme (VAT Notice 731) or Annual Accounting Scheme (VAT Notice 732).
- You may need to account for deemed supplies (e.g. on business assets/stock held at the EDC) — see VAT Notice 700/11.
Follow-up: If you do not receive an acknowledgement of your application, you should follow up after 30 days.
For full procedural detail, refer to VAT Notice 700/11: Cancelling your VAT registration.
Citation sources
The effective date of cancellation (EDC) refers to the date when a person is formally deregistered for VAT. A person is unable to charge VAT or recover input tax on supplies made after this date unless they becomes liable or registered for VAT again. The EDC is typically the date a person ceases to make supplies, usually when they stop trading, or voluntarily deregister - for example, if their value of supplies falls below the relevant threshold. A person who is requesting voluntary deregistrati
In certain situations you have to cancel your registration. These can include selling or closing your business, or when you stop making taxable supplies. You can also cancel your registration voluntarily if you’re no longer required to be registered. For more information on when and how to do this, read Cancelling your VAT registration (VAT Notice 700/11).
If you cease to practise and stop making taxable supplies of any kind, you must cancel your VAT registration. You must let us know about your intention to cancel your VAT registration within 30 days of ceasing to practise. You can cancel your VAT registration online or you can fill in a form VAT7 and send it to the BT VAT, HM Revenue and Customs, BX9 1WR. If you carry on making taxable supplies, but can satisfy HMRC that your taxable turnover in the next 12 months will remain below the VAT regis
gistration at any time—this is known as voluntary deregistration. If HMRC is satisfied that the conditions for voluntary deregistration are met, the EDC will be the date the request was made or a later agreed date. It cannot be retrospective. Please note: A person who voluntarily deregisters may need to account for deemed supplies at the EDC – see VAT notice 700/11. Appeals Under Section 83(1)(a) of the VAT Act 1994, a person has the right to appeal in relation to most registration and deregis
A de-registered debt is the VAT owed by a customer who has ceased to be liable for VAT registration. This normally happens when they cease to trade or when their turnover falls below the VAT threshold. The customer can request voluntary de-registration or the Department can initiate compulsory de-registration (for example, if the customer is missing and can no longer be contacted). When a business ceases to be liable to be registered for VAT they are required to notify HMRC under VAT Regulations
A person must notify HMRC within 30 days if they cease to make, or no longer intend to make, taxable supplies. If HMRC is satisfied that the person is no longer registerable, it may cancel their VAT registration with effect from the date they ceased making taxable supplies or a later date agreed with the person (see paragraph 13(2) of Schedule 1, VAT Act 1994). The term registerable is defined in paragraph 18 as a person who is neither liable nor entitled to be registered. This means HMRC can on