Hi.It's correct that you have to complete a final VAT return after deregistration as you will read here under the heading "VAT after you cancel".You use a fair market value for your stock as you can read here under the heading "How much VAT?" You only have to pay the VAT if it is over £1,000. If the link doesn't work click here and look for "VAT Deregistration - the final tax breaks - Tips & Advice".I hope this helps but let me know if you have any further questions.
I have already submitted a final NIL VAT return which has been acknowledged. What I am asking is do I have to refund any of the tax previously reclaimed on the stock I still hold, even though I don't intend to sell any of it? Normally VAT would not be payable until I sell stock.
Also I don't expect to pay a further fee for further advice links having just agreed to pay you to answer this question.
I use confirmation links as appropriate. If one of those didn't work, that's why I gave you the google search link. If by clicking on the google search term I put in parantheses, you still didn't get access, I apologise. It worked for me. I use searches in my work every day. I don't expect people to sign up to websites I give them links to. That is not my intention at all. All I'm doing is backing up my answer with third party verification from reputable knowledge bases. Most just answer customers want that reassurance.You have to account for VAT based on the notional disposal to yourself of the stock if the VAT is over £1,000. You received a VAT refund on the stock purchase price on the basis that you bought it for resale, not for private use. Therefore, when you derigister and take personal possession of the stock, you have to account for VAT as if you had sold it to yourself at the current market value. If that wasn't the case, some people would register for VAT, buy themselves an expensive item, reclaim the VAT and then deregister.
Thanks - I am not sure how I can estimate current market value of the remaining stock as it comprises over 200 items by numerous artists, which were originally purchased at anything from £10 to £3,000. All I know is that many items, particularly the more expensive ones, have declined in value quite substantially as public tastes for various artists have changed over the years, especially for people such as Sir ***** ***** Flint who was my most expensive artist at the time some 20 years ago. Are HMRC likely to accept a "gut feeling" estimate of say 50% less overall than I originally paid? If not how can I calculate the value more accurately as not even a professional art dealer would be able to give an accurate estimate without actually going to auction. This is why I wanted to speak to HMRC, but sadly am unable to contact anybody. I am not trying to avoid paying any VAT which might be reasonably due, but just trying to come up with a fair assessment. Do you have any further thoughts or suggestions ? Thank you.