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Deregister for VAT increase price by 20% ?

Deregister for VAT, implement price increase of 20% ?

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I cannot find any legislation which says this is not possible but at the back of my mind I have a niggle!  Can a business whose turnover has genuinely fallen below the VAT deregistration threshold, deregister for VAT then immediately implement a 20% price increase so gross prices to customers remain the same? Mostly B to C business.





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26th Nov 2018 14:05

VAT Law does not determine what price you charge!

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26th Nov 2018 14:07

Your price on its own is irrelevant, but the quantity you sell at that price might be relevant. Do you understand what I'm driving at?

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26th Nov 2018 14:10

You would need to consider impact it might have on your rolling 12 month turnover if close to registration threshold when deregistering, you might find yourself back over threshold fairly soon.

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26th Nov 2018 14:19

Thank you everyone, I just thought I had read somewhere that the business had to show it had decreased it's prices by 20% when it de-registered for VAT.
But then could find no reference to it, I had a niggle that I might be missing something.

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