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If your sales fall below the registration threshold over a specified period, or you stop selling in a particular country, you may be eligible to deregister for VAT/GST. The deregistration process requires notifying the relevant tax authority and submitting your final VAT/GST returns. However, it's important to ensure that all VAT/GST obligations, such as filing returns and making payments, are settled before the tax authorities will grant deregistration.
Country-specific rules
The process for VAT/GST deregistration can vary depending on the country. In some countries, there are specific sales thresholds that, once exceeded, trigger VAT/GST registration. At the same time, if you now find yourself below the threshold, you may not need the registration anymore.
In other countries, there may be no threshold, and you are required to register and remain registered regardless of your sales volume. This means that you would only be able to deregister your indirect tax number if you have stopped making sales.
It’s important to always check the regulations in each country where you are registered to determine whether a threshold applies or if deregistration is possible.
What you should do
To ensure a smooth deregistration process, it’s essential to:
Monitor your sales and thresholds: Regularly check your sales against the relevant country's thresholds to determine if deregistration is an option.
Ensure all VAT obligations are met: Before applying for deregistration, confirm that all your VAT/GST returns have been submitted, and any outstanding liabilities are paid in full.
Let us know that you intend to deregister your VAT/GST number: Once we confirm you can proceed with the deregistration, Taxually will notify the local tax authority and follow their process for submitting your final returns and closing your VAT/GST account.
Keep records: Even after deregistration, it’s important to keep VAT-related records for the required period, as audits may still apply post-deregistration.
Being proactive in monitoring your VAT/GST position will help ensure compliance and avoid potential penalties during the deregistration process.
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