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VAT question

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I am thinking of a scenario where a trader registers for VAT in order to buy a £5k + VAT van, reclaims the VAT, then immediately deregisters and takes advantage of the £1,000 de minimis.

Could someone please point me to a place in the VAT Regs (or elsewhere) that deal with this?

Many thanks.

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chips_at_mattersey
By Les Howard
25th Sep 2020 10:14

There is no single piece of legislation which addresses the arrangement you are proposing.
Deregistration based on future turnover depends on HMRC agreement; VAT Act 1994, Sch 1, para 13.

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By bettybobbymeggie
25th Sep 2020 10:25

Thanks for your reply Les. I am not proposing it, thankfully. It was suggested by a client and I wanted some legislation to quote to him. Maybe I should just tell him fine I'll do it but I'll charge £2k.

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By Paul Crowley
25th Sep 2020 10:47

Used to be the case that if you register, minimum one year
But think that was done away with

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