Why VAT Deregistration Is a Growing Concern for UK Small Businesses
For the modern entrepreneur navigating the post-2024 fiscal landscape, the shadow of HM Revenue and Customs (HMRC) often looms larger than the operational challenges of the business itself. The complexity of the British tax system, particularly regarding Value Added Tax (VAT), creates a significant psychological and administrative barrier for growth-oriented enterprises. Many business owners find themselves trapped in a state of compliance anxiety, staying registered for VAT long after the financial benefits have evaporated, simply because the VAT deregistration process appears fraught with risk and potential VAT deregistration HMRC penalties. This hesitation is understandable; the “VAT cliff edge” is a well-documented phenomenon where crossing the small business vat threshold can lead to an immediate 20% increase in prices or a corresponding hit to profit margins.
The decision to exit the VAT regime is increasingly relevant as economic conditions fluctuate. In periods of contraction or strategic restructuring, a business may see its turnover dip below the mandatory HMRC VAT threshold. Yet, the owner might fear that deregistering signals a lack of success or stability in the market. However, professional tax advisors frequently observe that staying registered unnecessarily drains cash flow and consumes dozens of hours in administrative labour every year. The introduction of Making Tax Digital (MTD) has only intensified this burden, requiring specific software and rigorous record-keeping that can be overwhelming for a sole trader navigating the VAT deregistration threshold or a micro-business.
The current climate has seen a rise in businesses seeking to understand when they can deregister VAT as a means of survival. By proactively managing the VAT deregistration threshold, a firm can regain its competitive edge, particularly in the business-to-consumer (B2C) sector, where customers cannot reclaim the tax. This report serves as a comprehensive guide for those feeling weighed down by the “VAT growth trap,” offering a clear path toward reclaiming administrative freedom while staying firmly on the right side of the law. The goal is to demystify the VAT deregistration rules and provide a calm, advisory framework for making the right decision for the long-term health of the business.
What Is the VAT Deregistration Threshold in the UK? (2026 Update)
The landscape for VAT thresholds remained stagnant for several years, creating a “bracket creep” effect where inflation pushed smaller businesses into the VAT net. This changed in April 2024 when the government announced the first significant increase in the threshold since 2017. For the current period, the VAT deregistration threshold 2026 is firmly established at £88,000.1 It is critical to distinguish this from the VAT threshold in the UK for mandatory registration, which currently stands at £90,000.
This £2,000 gap between the registration and deregistration figures is a deliberate policy choice by HMRC to prevent “yo-yoing” in a situation where a business might register one month and deregister the next due to minor fluctuations in income. The vat deregistration threshold represents the level below which a business must fall to be eligible for voluntary removal from the register. If the taxable turnover is expected to stay below this vat deregistration turnover limit for the foreseeable future, the path to deregistration opens.
| Threshold Type | Effective Date | Amount (£) | Purpose |
|---|---|---|---|
| Small Business VAT Threshold (Registration) | 1 April 2024 | 90,000 | Mandatory registration if exceeded |
| VAT Deregistration Threshold | 1 April 2024 | 88,000 | Eligibility to cancel registration |
| VAT Deregistration Threshold 2025 | Current | 88,000 | Ongoing limit for the 2025/26 tax year |
For a sole trader monitoring the VAT deregistration threshold, this limit is a monthly obligation. HMRC evaluates the HMRC vat threshold based on a rolling 12-month period, not a fixed calendar or financial year. Consequently, a business must have its finger on the pulse of its trailing 12-month turnover at all times. If the turnover consistently tracks below the vat deregistration turnover limit, the business owner should evaluate whether the vat deregistration benefits, such as simplified accounting and more competitive pricing, outweigh the ability to reclaim input tax on expenses.
Case Study: Retail/B2C Sector
Client: Oakfield Artisan Bakery, Surrey
Sector: Retail, B2C (non–VAT registered customer base)
Turnover Position: £76,800 over the last 12 months
Oakfield Artisan Bakery experienced a decline in demand after breaching the VAT registration threshold in 2022. The imposition of VAT increased prices for end customers by 20%, negatively impacting footfall and repeat orders. A review of their financials confirmed that turnover had stabilised below £88,000. Lanop’s Role:
- Conducted a rolling turnover assessment
- Completed the VAT deregistration online submission on behalf of the client
- Adjusted pricing model and issued customer communication plan
- Identified non-essential Vatable costs to protect margin post-deregistration
Results within 90 days:
- 18% improvement in unit sales volume
- Pricing repositioned without eroding profit
- Annual administrative spend on VAT compliance reduced by approximately £1,450
- No HMRC queries raised during the cancellation process
When Can I Deregister VAT? (All Legal Scenarios)
Determining when I can deregister for VATinvolves assessing the specific circumstances of the business against HMRC’s eligibility criteria. There are two primary avenues: compulsory deregistration and voluntary deregistration.
Compulsory Deregistration
HMRC mandates that a business must cancel its registration within 30 days if it is no longer eligible to be registered. The most common scenarios for compulsory action include:
- Ceasing to Trade: If the business stops all commercial activity and has no intention of making future taxable supplies.
- Change in Legal Structure: When a sole trader incorporates into a limited company, the original VAT registration must usually be cancelled (though the number can sometimes be transferred via specific vat deregistration rules).
- Sale of Business: If the entire business is sold as a going concern to a new owner who does not wish to keep the existing VAT number.
- Joining a VAT Group: Individual entities must deregister to join a group of registration under a single VAT number.
Voluntary Deregistration: Voluntary exit is an option for businesses that are still trading but whose turnover has diminished. A business can apply to deregister if it can satisfy HMRC that its taxable turnover in the next 12 months will not exceed the vat deregistration turnover limit of £88,000. This is a forward-looking test; while past turnover is a useful indicator, HMRC is primarily interested in projected income.
Additional scenarios where a business might ask when I can deregister for VAT include:
- Zero-Rated Supplies: If a business makes only zero-rated supplies, it can apply for an “exemption from registration” even if its turnover is above £90,000, as there is no net tax to collect.
- Seasonal Downturns: If a business experiences a permanent shift in its market, that lowers income below the vat deregistration threshold of 2025.
Failure to act on a mandatory requirement can lead to VAT deregistration and HMRC penalties, while failing to consider a voluntary exit can lead to unnecessary VAT deregistration costs in the form of accounting fees and lost pricing competitiveness.
How to Calculate Turnover for VAT Deregistration (Rolling 12 Months Explained)
To accurately track the VAT deregistration turnover limit, one must master the concept of “rolling turnover.” This is not your total sales for a set year; it is the total of your VAT-taxable sales for the previous 12 months, recalculated at the end of every month. For a VAT deregistration for a small business, this calculation must include:
- Standard-rated sales (20%).
- Reduced-rated sales (5%).
- Zero-rated sales (0%).
Crucially, “taxable turnover” does not include exempt income, such as certain financial services, insurance, or health services. It also excludes the sale of capital assets like machinery or vehicles. However, it does include the value of “reverse charge” services received from abroad, which can often catch a vat deregistration threshold sole trader off guard.
Example Calculation for the VAT Deregistration Turnover Limit
Consider a consultancy business reviewing its position on 31 December 2024.
- Sales Jan–Nov: £75,000
- Sales Dec: £5,000
- Total Rolling Turnover: £80,000
Since £80,000 is below the vat deregistration threshold of £88,000, and the consultant expects a similar pattern in 2025, they are eligible to apply for deregistration.
| Included in Taxable Turnover | Excluded from Taxable Turnover |
|---|---|
| Standard-rated goods/services | VAT-exempt supplies |
| Zero-rated goods (e.g., books) | Sales of business capital assets |
| Reduced-rated goods (e.g., energy) | Income from outside the scope of VAT |
| Services subject to reverse charge | Grants or non-business income |
If a business crosses the VATthreshold for small businesses due to a one-off, non-recurring event, it may apply for an “exception” to registration, proving to HMRC that turnover will fall below the VAT deregistration threshold within the next year. This is a vital nuance that prevents unnecessary entry into the vat deregistration process.
Case Study: Assets & Partial Exemption Complexity
Client: Restore Wellness Clinic, Manchester
Sector: Physiotherapy and Occupational Health Services
Turnover Position: £61,400
RestoreWell met the criteria for deregistration; however, the business held clinical equipment and treatment assets with VAT previously reclaimed. Under vat deregistration rules, this triggered a potential repayment of liability in excess of £2,100.
Lanop’s Strategic Intervention:
- Asset valuation review aligned with current market depreciation
- Compliance check for vat deregistration partial exemption application
- Timing optimisation to align the cancellation date with the asset value movement
- Preparation of adjusted final VAT return to HMRC
Result:
- VAT repayment liability legally reduced from £2,100 to £680
- Deregistration processed without enquiry or penalty.
- Clinic maintained pricing stability during transition.
VAT Deregistration Rules You Must Follow
The VAT deregistration rules are designed to ensure a clean exit from the tax system without leaving liabilities behind. The most fundamental rule is the 30-day notification window for compulsory scenarios. If a business stops making taxable supplies on June 1st but fails to notify HMRC until August, it may face VAT deregistration and HMRC penalties calculated as a percentage of the tax that should have been accounted for in that period.
A more complex set of VAT deregistration rules concerns “assets on hand.” If, on the day of deregistration, a business holds stock or capital assets (like laptops, vans, or machinery) on which it reclaimed VAT initially, it must pay that VAT back to HMRC. However, there is a “de minimis” buffer: if the total VAT due on these assets is £1,000 or less, no VAT is payable to HMRC.
Furthermore, the vat deregistration rules state that once a cancellation date is agreed upon, the business must:
- Immediately stop charging VAT on invoices.
- Stop claiming VAT on purchases.
- Keep all VAT-related records for six years.
- Remove the VAT registration number from all documentation.
In scenarios involving a VAT deregistration of partial exemption, the rules require a final adjustment to ensure that the input tax reclaimed during the final period accurately reflects the ratio of taxable to exempt supplies made. This complexity is why many firms seek accountants specialising in VAT deregistration to help avoid an audit shortly after closing their VAT account.
How to Deregister for VAT: Step-by-Step Process
The how-to deregister VAT journey typically begins in the digital realm, but the complexity of the business determines the exact path.
Step 1: The Online Submission
For most straightforward cases, such as falling below the vat deregistration threshold, the vat deregistration online submission is the preferred method.
- The taxpayer logs into the Government Gateway.
- Under “VAT services,” the option for “Cancel VAT registration” is selected.
- The system prompts a “Reason for cancellation” and an “Effective date.”
- The business must provide an estimated turnover for the next 12 months to prove it is below the vat deregistration turnover limit.
Step 2: The Paper Route (Form VAT7)
HMRC mandates the use of vat deregistration forms required by post in specific circumstances, such as changing a legal entity or closing a VAT group. The primary document is Form VAT7.
- The form VAT7 requires the VAT registration number, trading name, and specific details about assets held.
- It must be signed by a director, partner, or the vat deregistration threshold sole trader for themselves.
- The completed form is sent to HMRC’s central processing unit in Wolverhampton (BX9 1WR).
Step 3: Managing the Interim Period
While the VAT deregistration process is being reviewed, the business is in a state of limbo. It must continue to charge VAT and file returns until HMRC issues a formal “Notice of Cancellation”. This notice will provide the official “Effective Date of Cancellation” (EDC), which becomes the pivot point for all final accounting actions.
VAT Deregistration Timeline: What Happens After You Apply
The vat deregistration timeline is characterised by a three-week wait for initial confirmation, followed by a flurry of final administrative duties.
Week 1–3: The Review Phase
HMRC reviews the application to ensure the business isn’t trying to leave the system while still being over the vat threshold for small businesses. They may send a “letter of enquiry” asking for sales ledgers or copies of cancelled contracts to support the claim that income has fallen below the vat deregistration threshold of 2025.
Week 4: Confirmation and EDC
Once approved, the business receives its cancellation notice. At this exact moment, the VAT deregistration timeline moves into the “post-VAT” phase. The VAT number must be stripped from the website, invoices, and stationery immediately.
The Final VAT Return
The final return is usually due one month after the EDC (or two months for those on the VAT deregistration of partial exemption or cash accounting schemes). This return is unique because it must account for:
- VAT on final sales made up to the EDC.
- VAT on stock and assets over the £1,000 threshold.
- Any outstanding “reverse charge” liabilities.
| Timeline Milestone | Standard Business | Cash Accounting Business |
|---|---|---|
| VAT Deregistration Process Start | Day 0 | Day 0 |
| HMRC Confirmation Receipt | Week 3 | Week 3 |
| Stop Charging VAT | At EDC | At EDC |
| Final VAT Return Deadline | 1 Month post-EDC | 2 Months post-EDC |
| Payment of Final Tax | 1 Month post-EDC | 2 Months post-EDC |
Can I Backdate VAT Deregistration? (Safe vs Risky Scenarios)
The question of whether I can backdate vat deregistration is common for businesses that realised too late that they had fallen below the threshold. However, HMRC’s policy is strict: voluntary deregistration is rarely backdated. The EDC is typically the date HMRC receives the application, or a future date requested by the business.
When Backdating is “Safe”
HMRC will generally allow a business to backdate vat deregistration if it can prove it was compulsory to do so at an earlier date. For example:
- If the business ceased trading on 1 January but only notified HMRC in March, the deregistration will usually be backdated to 1 January.
- If a limited company were liquidated or dissolved, the date of dissolution becomes the backdated EDC.
When Backdating is “Risky”
Attempting to backdate VAT deregistration for a business that is still trading is a high-risk manoeuvre. If a business owner stops charging VAT before their official cancellation date, HMRC will view this as a tax shortfall. The tax authority has the power to assess the business for the missing 20% on all sales made during that period, plus interest, VAT deregistration, and HMRC penalties. In the case of Inspired by Service Ltd v HMRC [2023] UKFTT 467 (TC), the tribunal confirmed that backdating a voluntary registration is not permitted if the taxpayer was legally entitled to be registered at that time.
Costs, Risks, and Hidden Traps of VAT Deregistration
The VAT deregistration cost is not just about the administrative fees; it includes the hidden tax liabilities that crystallise at the point of exit.
The Asset Repayment Trap
As noted, if your stock and assets have a VAT-inclusive market value that leads to a tax liability of over £1,000, you must pay it back. This is a common VAT deregistration risk in the UK for retailers or tradespeople who hold expensive equipment or inventory. For example, a florist with £6,000 of cooling equipment (on which they reclaimed £1,200 VAT) would face an immediate £1,200 bill upon deregistration.
The Loss of Reclaimed Power
The VAT deregistration of cash flow impact can be severe if the business has significant overheads. Once you deregister, you can no longer reclaim VAT on:
- Rent on commercial premises.
- Professional fees (accountants, lawyers).
- Fuel, utilities, and software subscriptions.
For a business with high input costs, this can lead to a “hidden” 20% increase in operating expenses.
VAT Deregistration Benefits for Small Businesses
Despite the risks, the VAT deregistration benefits are a powerful draw for companies that have found their growth stifled by the tax system.
Pricing Power and Profitability
The most immediate benefit of VAT deregistration is seen in the B2C (business-to-consumer) sectors. If a plumber’s total invoice was previously £120 (£100 + £20 VAT), they can now charge £110. To the customer, the service is cheaper; to the plumber, the “take-home” pay has increased from £100 to £110. This pricing flexibility is a critical advantage for VAT deregistration for small businesses competing with larger, VAT-registered firms.
Administrative Freedom
Deregistering removes the quarterly stress of VAT returns and the looming threat of VAT deregistration and HMRC penalties for late filing. For a sole trader, this could mean saving 20–40 hours of admin per year. Furthermore, the business no longer needs to pay for specialised MTD-compliant software, further reducing the annual VAT deregistration cost.
Improved Cash Flow Predictability
While some businesses lose the ability to reclaim, many others find that the vat deregistration cash flow impact is positive because they no longer have to set aside 20% of every sale for the taxman. The cash in the bank belongs to the business, allowing for better day-to-day financial management.
VAT Deregistration vs Staying Registered: Which Is Better?
The VAT deregistration vs staying registered debate is essentially a trade-off between “reclaim power” and “pricing freedom”.
The B2B Logic
If your clients are other VAT-registered businesses, they do not care about the VAT you charge because they reclaim it. In this case, staying registered is nearly always better because it allows you to reclaim VAT on your own costs, making your business more profitable overall.
The B2C Logic
If your clients are the public, they cannot reclaim VAT. Your VAT registration acts as a 20% tax on your own competitiveness. For these businesses, staying under the small business VAT threshold is a strategic goal.
Decision Logic Matrix
| Business Factor | Favor Deregistration | Favor Staying Registered |
|---|---|---|
| Customer Base | Individuals (B2C) | Businesses (B2B) |
| Input Costs | Low (Services, Labor) | High (Materials, Stock, Rent) |
| Growth Plans | Stable / Lifestyle Business | Rapid scaling towards £100k+ |
| Brand Image | Local / Value-Focused | Established / Corporate |
A strategic VAT deregistration vs staying registered review should be conducted annually. If a business expects to hover around the £88,000 mark, it may be safer to stay registered to avoid the administrative burden of frequent re-registrations.
Case Study: B2B/Service Provider (Strategic Decision NOT to Deregister)
Client: Ridge Tech IT Support Ltd, Birmingham
Sector: B2B Managed IT Services
Turnover Position: £82,500 (below threshold but high VAT reclaim profile)
Although Ridge Tech fell below the VAT deregistration turnover limit, the nature of their cost base meant deregistration would not be advantageous. Hardware procurement, licensed software renewals, and professional subcontracting fees generated significant VAT input recovery.
Lanop’s Assessment:
- Break-even modelling comparing deregistered vs registered status
- Cash-flow projections, including VAT reclaim loss
- Pricing impact assessment for B2B contract renewals
Outcome:
Lanop advised not to deregister, supported by financial modelling. The client subsequently secured a commercial contract that elevated turnover above £100,000 within 8 months, reaffirming that deregistration would have restricted growth.
VAT Deregistration Checklist
A disciplined VATderegistration checklist is the best defence against a post-exit audit.
- Calculate Projected Turnover: Ensure the next 12 months will be below the £88,000 vat deregistration turnover limit.
- Asset Audit: Value all equipment and stock on which VAT was reclaimed. If the total VAT due is >£1,000, prepare the bill.
- Capital Goods Check: Verify if any property or high-value IT assets are within their 5- or 10-year CGS window.
- Submit Online or VAT7: Choose the correct VAT deregistration process route based on your business structure.
- Final Return Prep: If on cash accounting, prepare a list of all unpaid invoices to include in the final accrual-based return.
- Update Stationery: Set a reminder to strip the VAT number from your website and templates on the EDC.
- Client Notification: Tell any clients who “self-bill” or have long-term contracts that you are no longer VAT registered.
- Archive Records: Ensure all digital and physical VAT records are backed up and accessible for 6 years.
When You Should Get VAT Deregistration Accountant Help
While the VAT deregistration of online submission is simple, the underlying tax law is not. Professional vat deregistration accountant help is essential if:
- You own commercial property and have reclaimed VAT on it.
- You are selling your business as a Transfer of a Going Concern (TOGC).
- You have complex VAT deregistration of partial exemption calculations to resolve.
- You are concerned about the vat deregistration cash flow impact of paying VAT on your closing stock.
An accountant provides a “safe pair of hands” to ensure that the final return is bulletproof, preventing HMRC from reopening the case for years down the line.
How Lanop Can Help with VAT Deregistration
At Lanop Business and Tax Advisors, we pride ourselves on being more than just “compliance checkers.” We are strategic partners who understand the heavy burden that VAT places on UK entrepreneurs. We approach every vat deregistration process with an advisory mindset, first asking if it’s the right move for your specific business model. Our team has helped hundreds of sole traders and limited companies navigate the VAT deregistration threshold 2025, ensuring that every “i” is dotted and every “t” is crossed on the form VAT7.
We handle the heavy lifting from calculating your asset “self-supply” liability to managing the transition from cash to accrual accounting for your final return. By positioning Lanop as your representative, you minimise the risk of VAT deregistration and HMRC penalties and ensure that you leave the VAT system with your professional reputation intact. We offer a calm, experienced perspective that takes the “fear factor” out of dealing with HMRC, allowing you to focus on what you do best: running your business.
Client Testimonial:
“Lanop delivered clarity at a point where our VAT position was becoming a barrier to growth. Their review went beyond compliance; they modelled the financial impact, highlighted unseen risks, and executed the deregistration without disruption. We recovered control of our pricing and cash flow, a measurable improvement."
Conclusion: Making the Right VAT Deregistration Decision
Exiting the VAT regime is not an admission of defeat; it is often a masterstroke of financial and administrative efficiency. By falling back below the VAT deregistration threshold, a small business can strip away layers of red tape, reduce its VAT deregistration cost, and present a more attractive price point to its customers. However, the journey from being a “taxable person” to a non-registered entity must be managed with precision. The VAT deregistration rules regarding assets, stock, and the Capital Goods Scheme are the “sting in the tail” that can turn a smart move into a costly mistake if ignored. By following a rigorous VAT deregistration checklist and seeking a VAT deregistration accountant to help when things get complex, you can ensure that your departure from the VAT register is final and trouble-free. At Lanop, we are here to ensure that your business remains agile and unburdened, helping you make the right choice for your cash flow, your customers, and your future. Take a calm breath, look at your rolling 12-month figures, and if you’re ready to simplify your life, the path to deregistration is open.
Frequently Asked Questions
What is the VAT deregistration threshold in the UK?
The current VAT deregistration threshold in the UK is when your taxable turnover is expected to fall below £88,000 in the next 12 months, based on reasonable business forecasts and evidence. This is lower than the £90,000 registration threshold.
When can I deregister for VAT if my turnover falls below the UK threshold?
You can apply to deregister as soon as you genuinely expect your business turnover to remain below the VAT deregistration threshold for the coming 12 months. This must be based on real evidence like order books, contracts, or revenue trends; HMRC may request proof.
What is the current VAT deregistration turnover limit for 2025 in the UK?
For the 2024/2025 tax period, the VAT deregistration threshold remains £88,000, while the registration threshold is £90,000. These limits apply to most UK businesses unless exempt or supplying only zero-rated goods.
How do I check if my business qualifies for VAT deregistration under HMRC rules?
Check whether your rolling 12-month taxable turnover is under the VAT deregistration turnover limit, and whether you reasonably expect it to stay that way. Review sales, contracts, invoices, and pipeline forecasting as HMRC may request supporting evidence.
What is the process of deregistering VAT with HMRC in the UK?
The VAT deregistration process can be completed online, via your Government Gateway account or by submitting form VAT7. You’ll choose an effective date, confirm your turnover, and provide supporting evidence if requested.
Can a sole trader deregister VAT, and what threshold applies?
Yes, there is no separate rule. The VAT deregistration threshold for a sole trader is the same limit used for companies: £88,000. Sole traders often deregister to reduce admin and pricing pressure if serving mostly non-VAT-registered clients.
What happens to my VAT returns and invoices after I deregister for VAT in the UK?
After deregistration, you’ll file a final VAT return, stop charging VAT on invoices, and update invoices, pricing, and accounting software. You must keep VAT records for at least six years for HMRC compliance.
Do I need to repay or adjust input VAT on assets when I deregister VAT?
Possibly. You may need to repay VAT on stock, equipment, or assets still held on the deregistration date if their total market value exceeds the HMRC threshold (commonly £1,000+). This is one of the key VAT deregistration risks UK businesses overlook.
What are the main tax and cash-flow benefits of VAT deregistration below the threshold?
The VAT deregistration benefits include simplified paperwork, reduced administrative costs, and the ability to lower prices for non-VAT-registered customers. Some businesses also benefit from improved cash flow if they were previously paying VAT before invoices were settled.
What risks or downsides should I consider before deregistering VAT in the UK?
Before applying, consider the impact of pricing perception, potential loss of input VAT reclaim, and potential VAT charges on assets. Some B2B clients may prefer VAT invoices, so customer expectations should be considered carefully.
How long does VAT deregistration take once I submit the request to HMRC?
The VAT deregistration timeline usually ranges from 7 to 30 days, depending on HMRC workload and whether they need clarification or supporting evidence.
Can I backdate VAT deregistration if my turnover dropped below the threshold earlier?
Yes, in certain cases, you can backdate VAT deregistration. However, HMRC may require proof and may request invoice adjustments.
What records and evidence do I need to support a VAT deregistration application?
Maintain revenue reports, pipeline evidence, booking calendars, and bank statements to prove eligibility. Keeping a VAT deregistration checklist ensures everything is prepared before submission to avoid delays.
How will VAT deregistration affect my prices, quotes, and customer perception?
Your prices may appear more attractive to consumers and smaller clients because VAT is no longer added. However, business-to-business customers who recover VAT may be indifferent or might question the change.
When should I speak to an accountant about VAT deregistration to reduce my tax burden safely?
Seek professional guidance when:
- You have higher-value assets or stocks.
- Your pricing strategy depends on VAT invoices.
- You use cash vs invoice accounting.
- You have international sales or zero-rated supplies.
