A VAT 7 form (also written VAT7) is the form a business uses to cancel its VAT registration with HMRC, either online or by post. Businesses submit it when they stop trading, when turnover falls below the deregistration threshold, or when they no longer make taxable supplies.
This guide explains when a business must file a VAT 7, how to submit it, and what happens to VAT obligations afterwards.
When Do I Need to Submit a VAT 7 Form?
Deregistration is compulsory in some situations and optional in others. The difference matters, because compulsory cases carry a 30-day deadline.
Compulsory Deregistration
- The business stops trading: HMRC must be told within 30 days of stopping.
- The business no longer makes taxable supplies: for example, it moves entirely into exempt activities. The same 30-day deadline applies.
- The legal entity changes: for example, a sole trader incorporates as a limited company. The old registration must close, although the new company can often keep the same VAT number by applying to transfer it on form VAT68.
- The business is sold: the seller cancels its registration, unless the buyer takes over the VAT number.
- The business joins a VAT group: its individual registration is cancelled and replaced by the group registration.
Missing the 30-day deadline can lead to a penalty from HMRC, so timing the submission matters as much as filing it correctly.
Voluntary Deregistration
A business can apply to deregister if it expects its VAT taxable turnover for the next 12 months to stay below £88,000, the current deregistration threshold. It can do this even while it continues trading.
How Do I Submit a VAT 7 Form?
You can submit deregistration online through your VAT online account, or by post on the paper VAT 7 form. HMRC’s cancellation guidance on GOV.UK links to both routes.
Online Through the VAT Online Account
Most businesses deregister through their VAT online account. The online route is faster and confirms straight away that HMRC has received the request.
By Post Using the Paper VAT 7 Form
Businesses without online access can download, print and post the paper VAT 7 form. Send it to BT VAT, HM Revenue and Customs, BX9 1WR, but check the address printed on the current form before posting. Postal applications usually take longer to process than online ones.
Either way, you need your VAT registration number and a clear reason for deregistration before you start.
What Information Does the Form Require?
The VAT 7 form asks for specific details rather than a general explanation. HMRC needs:
- The VAT registration number
- The reason for deregistration, chosen from HMRC’s set categories
- The date trading stopped, if applicable
- Expected taxable turnover for the next 12 months, for voluntary applications
- The value of any stock or assets still held, since VAT may be due on these at deregistration
Incomplete forms delay processing, so gather this information before you start the submission.
How Long Does Deregistration Take?
HMRC usually confirms deregistration within three weeks of receiving a complete VAT 7 form. The confirmation states the official deregistration date, which is not always the date you applied. In compulsory cases, it is usually the date trading or taxable supplies stopped. In voluntary cases, it is normally the date of the application or an agreed later date.
Until confirmation arrives, the business must keep charging and accounting for VAT as normal.
What Happens After VAT Deregistration?
Several obligations change once HMRC confirms the deregistration date.
- VAT charging stops: the business can no longer charge VAT on sales from the confirmed date.
- A final VAT return becomes due: it covers the period up to deregistration and must still be filed and paid on time.
- VAT on retained stock and assets may apply: output VAT is due on stock and assets still held at deregistration where VAT was reclaimed on them, if the total VAT due is more than £1,000.
- Records must be kept for six years: deregistration does not remove the duty to keep VAT records.
- Input VAT recovery ends: VAT on future purchases can no longer be reclaimed.
If the business later needs to register again, for example after turnover rises, it restarts the registration process and usually receives a new VAT number.
Can I Deregister Voluntarily If I’m Below the Threshold?
Yes. Voluntary deregistration is available when taxable turnover for the next 12 months is expected to stay below £88,000. Many small businesses choose this to reduce administration and to stop adding VAT to prices for customers who cannot reclaim it.
HMRC reviews voluntary applications individually. The business must show that turnover will stay below the threshold going forward, not only that it dipped below it for a short time.
Deregistering also has a cost: the business loses the ability to reclaim VAT on its own purchases. A scheme such as the Flat Rate Scheme can sometimes reduce the burden without giving up registration. Our VAT return services in Slough compare projected turnover and scheme options before a business applies, which avoids an unnecessary re-registration later.
What If I Deregister by Mistake?
If you deregister in error, contact HMRC as soon as you spot the mistake. Depending on the circumstances, HMRC may restore the original registration or ask for a new application. Any gap where the business traded without a valid VAT number can lead to backdated VAT and adjustments, so acting quickly limits the complications.
Frequently Asked Questions
Is there a fee to submit a VAT 7 form?
No. Deregistering for VAT is free, whether you apply online or by post.
Can I deregister for VAT with outstanding returns?
Outstanding returns and any VAT owed still have to be dealt with, and unresolved returns can delay deregistration. Filing everything due before applying keeps the process straightforward.
Does deregistering cancel my EORI number?
No. An EORI number, used for importing and exporting goods, is separate from VAT registration and is not automatically cancelled by a VAT 7 form.
Can a deregistered business still reclaim VAT on old invoices?
In limited cases, yes. VAT on costs relating to the period of registration, such as an invoice received late or accountancy fees for the final return, can be claimed on form VAT427.