7. Treatment of persons as not accountable

This section provides that Revenue may cancel a VAT registration where the trader is no longer an accountable person. The implication of Revenue cancelling a VAT registration, as opposed to the trader cancelling an election to register, is that the trader does not have to repay any excess tax refunded to him or her during the period of the registration. The section applies where a person is below the registration threshold and is not an election case.

Note that persons carrying on only exempt activities or persons carrying on activities otherwise than in the course or furtherance of business may not register for VAT. Where persons that are otherwise exempt are required to register in respect of intra-Community acquisitions or received services from abroad, etc., they do not get any deductibility for VAT incurred on their purchases.

Relevant Date: Finance Act 2020