Very occasionally a person de-registers for VAT, then pays VAT on the assets-on-hand at de-registration, then re-registers and uses the same assets in the business.

Subject to conditions, VAT that was accounted for on a deemed supply of goods-on-hand when a person de-registers may later be reclaimed if and when the person registers again for VAT and to the extent that the goods are still held. The claimant needs proof of paying such VAT to HMRC when he had de-registered (HMRC Brief 1/2012 (23 January 2012); Value Added Tax Regulations 1995 (SI 1995/2518), reg. 111).

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