Claiming VAT After Deregistration

A number of businesses choose to deregister for VAT.

It could be that the business has dropped below the turnover threshold for compulsory VAT registration or has stopped supplying goods that carry a VAT charge.

It is possible that a business will receive VAT invoices from suppliers after it has deregistered and filed its final VAT return for goods that were bought while it was still registered for VAT.

The VAT on those invoices can still be reclaimed.

The business will need to complete a Form VAT 427. Form VAT 427 allows businesses that have deregistered to claim input tax on invoices that apply to the period before they deregistered and that have not been included on any previous VAT return.

The relevant invoices will need to be sent to the appropriate HM Revenue and Customs department along with Form VAT 427.

There is a time limit on claiming input tax in this way. The claim must be made within three years of the date of the invoices.