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Dear sir, please explain the impact on the input and output VAT on the date of detegistration sales and purchases?
I have gone through your lectures. But still I’m unable to catch it? Could you please tell me with an example (figures) ?
Please consider the input VAT already claimed aspect as well.
Thanks in advance .If when the trader deregisters, the trader still owns inventory and plant and machinery upon which VAT input tax has been reclaimed that is valued at say £10,000 then output tax at 20% amounting to £2,000 will have to be paid out to HMRC
If however the amount of output tax amounted to no more than £1,000 then no such payment will be required to be made, for example the value of inventory and plant amounted to say £4,000 then the output tax would be only £800 and therefore no such payment is required to be made.Thank you so much sir.
Assume the trader still supply standard rated product (deregistration is due to reduction in turnover) he doesn’t have to raise VAT invoices on deregistration date. Am I correct?
Invoices will indeed not have to be issued but the output tax must be paid over to HMRC
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