Backdating Vat voluntary registration

Backdating Vat voluntary registration

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Sometimes it is favourable for a trader to backdate voluntary registration, but this can only be done with the original application for registration. If the trader omits to backdate the date of registration, can they deregister, and reapply using the desired date?
Eg, trader applies to be registered from say March 1st; then realises that registering from Jan 1st 2007 would have been beneficial; there is therefore still time to cancel the registration which has not yet commenced.
Cancellation of registration would seem to be unproblematical under Vata 1994 Sch 1 para 13; the trader would then no longer be "already so registered" and therefore entitled to apply under para 9.
Can it work?
chris prescott

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By AnonymousUser
20th Feb 2008 19:12

Paul, thanks for your reply.
I've had a look at the Guidance V1-28 today, in particular para 7.2.2 which clarifies HMRC's position, and which I'm sure you're familiar with!
Bearing in mind that the registration is not yet effective, being dated from March 1st, do you think immediate application for deregistration, also to be dated March 1st, would avoid the problem of being "already so registered".
I've looked through Tolley's Vat Cases (2006) and haven't found a case which quite reflects this.

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By theaardvark
20th Feb 2008 09:36

No.
HMRC will not allow you to have 2 registrations covering the same period (i.e. the period of the original registration).

Unfortunately, if the wrong date was used in the original application there is nothing that can be done to correct that.

Regards,

Paul Taylor
Senior VAT Consultant
Dains

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