Cancel VAT Registration Guidance

Detected March 20th, 2026

Summary

HM Revenue & Customs (HMRC) has updated guidance on how businesses can cancel their VAT registration, either online or by post. The guidance details the process, including the use of specific forms like VAT 7 and VAT 50-51 for VAT group registrations, and clarifies when cancellation applies, particularly concerning asset sales.

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What changed

This guidance document from HMRC outlines the procedures for cancelling a VAT registration. It specifies that businesses must use Form VAT 7 for individual cancellations or Forms VAT 50-51 for VAT group registrations, and provides links to relevant forms and further information. The guidance emphasizes that businesses should not cancel their VAT registration immediately upon appointment over a business if asset sales are planned, as VAT invoices require the business to be VAT registered at the time of issuance.

Compliance officers should note the specific forms required for cancellation and ensure that any asset sales are properly accounted for before initiating the cancellation process. The guidance directs users to the gov.uk website for detailed instructions and forms, indicating that the process is primarily handled through online submissions or postal applications to the address specified on the forms.

What to do next

Review guidance on cancelling VAT registration.
Use Form VAT 7 for individual cancellations or Forms VAT 50-51 for VAT group registrations.
Ensure VAT registration is maintained if asset sales are planned.

Source document (simplified)

6. Cancel your VAT registration

How to cancel a VAT registration online or by post.

6.1 What is VAT registration cancellation

VAT registration cancellation is the process by which a VAT-registered business is removed from the VAT register and the VAT registration number cancelled.

6.2 When VAT registration cancellation applies

Read about how to cancel your VAT registration and what happens after.

More information about cancelling your VAT registration can be found in Cancelling your VAT registration (Notice 700/11).

‘Taxable supplies’ in this context includes sales of assets. You should therefore not apply to cancel your VAT registration immediately upon your appointment over a business, even if that business has ceased to trade, as the VAT arising from asset sales will still need to be included on a post-appointment VAT Return.

The sale of assets must be evidenced by a legally valid VAT invoice and, for a VAT invoice to be legally valid, the business must be VAT registered at the point that the invoice is issued.

6.3 How to cancel your VAT registration

You should apply to cancel the VAT registration of the business concerned by completing form VAT 7. The completed form should be sent to the address on the form.