Latest from the courts, the Euro Beer Distribution Ltd First Tier Tribunal (FTT) case.
The intention of a taxpayer is extremely important for a number of reasons. It is relevant where:
a VAT registration is requested
input tax is claimed
and in this case; whether deregistration is compulsory
Broadly, immediate action is dependent upon whether a business intends to make taxable supplies in the future. This intention dictates whether registration is possible, whether input tax may be claimed, and whether a business may remain VAT registered. Even if a business has the intention to make taxable supplies, it is sometimes difficult to evidence this to HMRC’s satisfaction.
Source: marcusward.co
