Question for any VAT experts out there
Company A registers for VAT because turnover is over the threshold BUT they also opt for payment of VAT on a Cash Receipts basis (because turnover is bleow THAT threshold)
Therefore they issue invoices to debtors as normal and return the VAT as they get paid.
No problems with this obviously
However
Then business slows down and turnover drops below VAT registration threshold so Company A decides to deregister for VAT
However they still have a number of debtors as at date of deregistration who will have already been invoiced inclusive of VAT but have not yet paid
When (If!) those debtors pay, how does Company A return the VAT to Revenue if they are deregistered and no longer have to submit VAT returns.
Company A registers for VAT because turnover is over the threshold BUT they also opt for payment of VAT on a Cash Receipts basis (because turnover is bleow THAT threshold)
Therefore they issue invoices to debtors as normal and return the VAT as they get paid.
No problems with this obviously
However
Then business slows down and turnover drops below VAT registration threshold so Company A decides to deregister for VAT
However they still have a number of debtors as at date of deregistration who will have already been invoiced inclusive of VAT but have not yet paid
When (If!) those debtors pay, how does Company A return the VAT to Revenue if they are deregistered and no longer have to submit VAT returns.