Are there any implications when de-registering for VAT? Audit etc? Is it a case that, on supplying goods for example, you re-register when you again reach the threshold?
A person who has elected to register for VAT may cancel his or her registration by arrangement with the
relevant Revenue District. It is a condition of such cancellation that he/she pays to Revenue any excess
of VAT refunded to him/her over the tax paid for the taxable periods during which the election had effect
or three years prior to the date of application for cancellation, whichever is the lesser
Nothwithstanding the above, I have seen a case where the business proved that they registered in good faith and they didn't have to repay the VAT claims. The business was closing permanently though which may have had an impact on Revenue's waiver of their VAT claim.
You should only de-register if you are confident that you won't reach the threshold again in the near future as constant registrations/dereg's will leave you open to a Revenue audit.
Thanks for replying. One business will be under the threshold hence us thinking of deregistering for twelve months or so.. Seems like a sensible thing to do at the moment.