Value Added Tax Act 1994, Schedule 1, paragraph 13

Cancellation of registration

SCHEDULE 1 Registration in respect of taxable supplies : UK establishment

13 (1) Subject to sub-paragraph (4) below, where a registered person satisfies the Commissioners that he is not liable to be registered under this Schedule, they shall, if he so requests, cancel his registration with effect from the day on which the request is made or from such later date as may be agreed between them and him.

(2) Subject to sub-paragraph (5) below, where the Commissioners are satisfied that a registered person has ceased to be registrable, they may cancel his registration with effect from the day on which he so ceased or from such later date as may be agreed between them and him.

(3) Where the Commissioners are satisfied that on the day on which a registered person was registered he was not registrable, they may cancel his registration with effect from that day.

(4) The Commissioners shall not under sub-paragraph (1) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement to be registered under this Act.

(5) The Commissioners shall not under sub-paragraph (2) above cancel a person’s registration with effect from any time unless they are satisfied that it is not a time when that person would be subject to a requirement, or entitled, to be registered under this Act.

(6) In determining for the purposes of sub-paragraph (4) or (5) above whether a person would be subject to a requirement, or entitled, to be registered at any time, so much of any provision of this Act as prevents a person from becoming liable or entitled to be registered when he is already registered or when he is so liable under any other provision shall be disregarded.

(7) In this paragraph, any reference to a registered person is a reference to a person who is registered under this Schedule.

F991 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definitions used in Schedule 1, paragraph 13 3

registered person

(13) Without prejudice to the provisions of section 43 concerning liability for VAT, “registered person”, for the purposes of this paragraph, includes any person who under that section is for the time being treated as a member of a group.

Defined in Sch.9ZB para.17(13) · see it in the full Act
the Commissioners

“the Commissioners” means the Commissioners of Customs and Excise;

Defined in s.96(1) · see it in the full Act
registrable

18 In this Schedule “registrable” means liable or entitled to be registered under this Schedule.

Defined in Sch.1 para.18 · see it in the full Act

Cases considering Schedule 1, paragraph 13 6

Impact Contracting Solutions Limited v The Commissioners for HMRC

[2023] UKUT 215 (TCC) · 1 September 2023Limits

The Tribunal held that paragraph 13(5) restricts a cancellation made under paragraph 13(2). It did not decide HMRC's alternative argument that Ablessio-based deregistration fell within paragraph 13(2). (see paras [54]; [60]) The Tribunal held that paragraph 13(5) restricts a cancellation made under paragraph 13(2), not deregistration under the free-standing VAT abuse principle. It therefore did not prohibit the contested action. (see paras [54]; [60]-[61])

GB Fleet Hire Limited v The Commissioners for HMRC

[2022] UKUT 307 (TCC) · 17 November 2022Limits

Confirms HMRC’s power to cancel registration where a registered person has ceased to be registrable. The power was treated as prospective and subject to proportionality and continuing assessment of the relevant risk. (see paras [13]-[15]; [36]-[37])

Ingenious Construction Ltd, R (On the Application Of) v Revenue And Customs

[2020] EWHC 2255 (Admin) · 18 August 2020Interprets

The court interpreted Schedule 1 paragraph 13(2) as conferring power on HMRC to cancel a VAT registration where the registered person has ceased to be registrable and is not entitled to remain registered. The provision supported rejection of the argument that HMRC lacked power to deregister (see paras [42], [44]). The court interpreted Schedule 1 paragraph 13(5), together with paragraph 13(2), as supporting HMRC’s power to cancel a registration where the person is no longer entitled to be registered. The statutory power operated alongside the Community law doctrine of abuse (see para [44]).

What each judgment says about Schedule 1, paragraph 13 is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F991Sch. 1 para. 13(8) omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 81(5) (with Sch. 8 para. 99) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) this amendment is subject to savings and/or transitional provisions, see the commentary.