When to cancel your registration
You must cancel your registration if your business no longer makes taxable (standard and zero-rated) sales because:
- your business has closed
- you have sold your business (or the part of your business that makes taxable sales)
- the nature of your business has changed so that it no longer makes taxable sales
- your business joins a GST group registration
- you no longer intend to make taxable sales
- your business has been approved as an international services entity (ISE)
You must notify us in writing - quoting your name, address and GST registration number - within 30 days of the date when one of the above (or the earliest if more than one) happens.
If you don't notify us within 30 days you may be fined.
Cancelling your registration voluntarily
You can cancel your registration voluntarily if you have reasonable grounds to believe that the value of taxable sales your business makes is below the registration threshold (£300,000 in any 12 months), and will be for the foreseeable future.
You will need to satisfy us that you will stop charging your customers GST or, if you are a retailer, that you are going to reduce your prices by the GST element.
You will not be allowed to cancel your registration if the reduction in your turnover is only due to your business being seasonal.
Mistakenly registering for GST
If you think you registered for GST by mistake, we may be able to cancel your GST registration from the date you first registered. However, you won't be able to cancel your registration if you have:
- charged GST to your customers
- claimed a credit or refund of GST
- imported any goods or services without paying GST at the time of import
If we decide that you must continue to be registered, you must continue to account for GST. If you disagree with our decision, you can appeal.
Appealing a GST decision
How to cancel your GST registration
To cancel your registration, you can email domestic GST enquiries, giving us the details why you wish to cancel.
We will issue you with a letter confirming:
- that your GST registration has been cancelled
- the date of cancellation
We'll send you a final GST return, on which you must include:
- the values of sales, purchases and imports from the day after the end of your last GST return to the date of cancellation
- the value of tangible assets (such as stock, fixtures and fittings, premises, equipment and vehicles) on the date of cancellation
- GST on the value of the tangible assets of the business on the date of cancellation (but only if the total GST is over £250)
- GST you've charged your customers on sales in that period (output tax)
- GST you've paid on purchases and expenses in that period (input tax)
Assets on hand
Assets on hand at the time of cancellation are subject to GST at the normal rate.
You must also include all stock on hand at cancellation and, if you are a Customs-approved trader, the value of all imported goods and assets on hand.
Don't include assets on which you would not be entitled to claim input tax, such as:
- the value of any goods or assets you acquired before 6 May 2008, or the date you registered for GST (whichever is later)
- goods bought from businesses that aren't registered for GST
- vehicles bought under the GST margin scheme for the motor trade
- goods bought for non-business purposes
You don't need to include intangible assets such as patents, copyrights and goodwill.
For more information, see Schedule 4, paragraph 11 of the GST law 2007.
Goods and Services Tax (Jersey) Law 2007 on Jersey Law website
What date will my registration be cancelled?
If cancelling your registration is compulsory, it will be effective from the date:
- you stop making taxable sales
- your intention to make taxable sales stops
- you sell your business
- your business joins a GST group
If you are cancelling your registration voluntarily, you will need to advise us of the date you want your GST registration to end. You should continue to charge and account for GST until we confirm that your registration has been cancelled.
You can't apply for your registration to be cancelled retrospectively.
What if I am partly exempt from input tax?
If you are partly exempt from input tax, your de-registration period will run from the day following your last full tax year to the date your registration stops.
However, if you didn't pay any exempt input tax in your previous tax year, your de-registration period will run from the first day of the accounting period in the final tax year in which you first paid exempt input tax until the date your registration stops.
Partial exemption from GST input tax
After your GST registration has been cancelled
From the date your GST registration is cancelled you must not:
- charge GST or issue GST invoices for any sales you make
- issue any invoices with your GST registration number on
If your customers issue GST invoices on your behalf under self-billing arrangements, you must tell them immediately that you are no longer registered and they must not charge GST on any further sales you make.
You may have to pay a fine if you issue a GST invoice after your registration has been cancelled.
When a business de-registers GST must be paid on all imports directly to Customs. Contact Customs for further advice and payment options.
Tel: +44 (0) 1534 448000
Getting a refund
You can claim a GST refund:
- if your registration had continued, the GST would have been deductible as input tax
- where goods were supplied to your business, they were supplied before cancellation and output tax was declared on your GST return
- where services were supplied to your business, they were supplied before cancellation or relate to the winding up, sale or transfer of the business (such as a solicitor or accountant)
If you receive an invoice from a supplier after your date of cancellation for a sale you made before the date of cancellation, you can include the GST shown on the invoice as input tax on your final GST return.
If you receive an invoice after you have submitted your final GST return, you can claim a refund of GST. Simply fill in the online refund claim form.
GST refund form on the Taxes Office website
If you have cancelled your registration and need to register again
You must notify us promptly if you become liable to be registered at any time in the future. There are penalties for failing to register at the proper time.
If you cancel your registration by mistake
The action we take depends on why your registration was cancelled. If you supplied false or misleading information to cancel your registration, we will re-register you and penalties may be applied. You will have to account for any GST due from the date of re-registration.
Recovering bad debts after you cancel your registration
After you cancel your registration, you can still claim a GST refund for bad debts. You should make your claim within six months of cancelling your registration.
To find out if you meet the conditions for bad debt refunds, see the 'GST: dealing with bad debts' page.
Bad debts and your GST return