- Deregistration Criteria: HMRC can deregister or prevent a trader from registering for VAT if there is evidence of VAT fraud or misuse of VAT registration numbers, as outlined by the Ablessio principle derived from CJEU case law, which emphasizes the need for objective evidence of fraudulent activity.
- Overall Assessment Required: When considering deregistration, HMRC must conduct a comprehensive assessment of various factors, including the trader’s connections to VAT fraud, business model viability, and transaction characteristics, ensuring that decisions are based on solid evidence rather than mere suspicion.
- Appeal Process: Taxable persons have the right to contest decisions related to deregistration under the Ablessio principle, with the option to request a review by an independent officer, ensuring transparency and fairness in the enforcement of VAT regulations.
Source gov.uk
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