Readers’ forum: Continuing VAT returns or can company deregister?

Our client is a UK company specialising in procuring and selling materials for the printing industry. The materials have to date been sourced in the UK and Korea. They are shipped direct to customers in Malaysia and Taiwan.

While the purchase and sale is reflected in the company all goods are sent direct from the supplier to the customer. The company is registered for VAT and has input VAT on the UK supplier’s goods. That supplier is stopping business and therefore no purchases will incur VAT.

At present the company has repayment VAT returns each month. Once the UK supplier ceases to trade do VAT returns still need to be made or can the company deregister?

Readers’ comments are welcomed.

Query 20 130 – J Verne.

There is no need for the company to deregister.

Up to now the client’s supplies appear all to...