HMRC form VAT 7

[The Moose]

I was wondering if any of the finance people on here would be able to help answer a quick question.

On the form VAT 7 (deregister for VAT), Question 7 - that is the amount of VAT I owe to HMRC based on goods that are still mine that I've claimed the VAT back on, correct? (sole trader here)

Cheers

The Moose

[Wings]

Perhaps this post might be better in the Business forum for Eric to answer. Ages since I completed the VAT 7 form, but I believe question 7 relates to stock that you have once purchased, and the purchase VAT you paid on those goods, you deducted (claimed for) from your Sales VAT, when submitting your quarterly VAT return.

What HMR&C are now asking you to do is to work out the value of your VAT rated stock, and then the VAT figure/amount for that stock, which since you have previously claimed back the VAT, which you will now have to repay back to HMR&C.

[Eric Mc]

Haven't filled one in for a while but when a business ceases to trade or wants to de-register for VAT, there may be unsold stock on hand or fixtures and fittings in the owner's possession on which Input VAT had been reclaimed when initially purchased.

HMRC wants you to pay back to them the Input VAT on these items based on their market value at the date of cessation or the date of deregistration.