To de-register for VAT you must cancel your VAT registration with HMRC if you're no longer eligible, for example, if you stop trading.

You can also ask to cancel your registration if your VAT taxable turnover falls below the de-registration threshold. Find out more on Gov.uk.

When HMRC confirm your official de-registration date, you must:

• Stop charging VAT from that date
• Submit a VAT Return for the final period up to that date
• Keep your VAT records for 6 years

Run your final VAT Return

1. Back up your data.
2. On the navigation bar click VAT, click VAT Return then enter the date range for your final VAT period, up to and including the de-registration date.
3. Click Calculate VAT Return, then check and reconcile your VAT Return as normal.

Check your non-vatable tax code

1. On the menu bar click Settings, then click Company Preferences.
2. Click VAT, make a note of the Non-Vatable Tax Code, then click OK.

Update your customer, supplier and product records

NOTE: In Sage 50 Accounts Essentials and Sage Instant Accounts, you must open each record in turn and change the default tax code to your non-vatable tax code.

1. On the navigation bar click Customers, Suppliers or Products and services.
2. Click Swap, then click Batch changes.
   
   TIP:  In Customers, if you can't see Batch changes, click the New/edit drop-down then click Batch changes.
   
   
3. Click Defaults, change the default tax code to your non-vatable tax code, click Save then click Yes.

Update your default settings

1. On the menu bar click Settings, then click Customer Defaults.
2. In the tax code drop-down, click your non-vatable tax code, then click OK.
3. Repeat steps 1 and 2 for the following areas:
   
   • Supplier Defaults
   • Bank Defaults
   • Product Defaults
   • Invoice & Order Defaults, Options tab.

Remove your VAT registration number

Once you've accounted for all outstanding VAT with HMRC, you can remove your VAT registration number.

1. On the menu bar click Settings, then click Company Preferences.
2. Click VAT, in VAT Reg remove your VAT registration number, then click OK.

TIP: Don't forget, if you've added your VAT registration number as text on any reports or layouts, you should re-edit the documents and remove it.

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