For small businesses, VAT registration is sometimes more of a burden than an advantage. With the higher threshold for mandatory registration, many are wondering how to terminate it. Deregistration under VAT is possible, but only on certain grounds.
In this manual, an accounting firm Rodi Consult (Varna) explains when and how you can deregister under VAT — updated for 2026.
In short: Deregistration under the VAT Act is possible when the grounds for registration cease to exist - under Art. 96, when the turnover for 12 months falls below EUR 51,130; in the case of voluntary registration with a 12-month limit; under Art. 97a and Art. 99, when the conditions are no longer met. After deregistration, you do not charge VAT, but you also lose the tax credit.
In case of mandatory registration (Art. 96)
If you registered because of a turnover you have reached, you have the right to deregister when the reason no longer applies - that is, when your taxable turnover for the last 12 months fall under 51,130 euros. For more information about the grounds for registration, see the article. When is VAT registration mandatory?.
In case of voluntary registration (Art. 100)
There are two conditions here: at the time of application, yes there is no basis for mandatory registration, and it has passed at least 12 months from the beginning of the calendar year following the year of registration. That is, those who registered voluntarily in 2024 can deregister at the earliest from the beginning of 2026.
Upon registration under Art. 97a
Registration for services from/to abroad (Facebook, Google, Amazon, etc.) may be terminated at any time, as long as there is no reason for mandatory registration, you do not receive services from foreign suppliers and you do not provide taxable services to the EU. There is no binding deadline.
Upon registration under Art. 99 (GPA)
For intra-Community acquisitions, deregistration is possible when there is no basis for mandatory registration and the amount of the GST for the previous calendar year does not exceed 10,000 euros.
The step-by-step procedure
Submit deregistration application to the NRA with the stated reason and attached references (turnover by months, VOP, etc.). In case of voluntary deregistration, there is no legal deadline for submission. The NRA checks the reason and issues deregistration act within 7 days. The date of deregistration is the day the deed was served on you.
Liabilities for the last tax period
The unpleasant moment: on the date of deregistration, it is assumed that you are performing delivery of all available assets, for which you used tax credit. In practice, you return the used credit - with a protocol-inventory (Appendix No. 9), included in the sales journal and the reference-declaration for the last period. For assets without used credit (e.g. a car), VAT is not charged.
FAQ
When can I deregister for VAT?
When the grounds for registration cease to exist. In the case of mandatory registration under Art. 96 — when the taxable turnover for the last 12 months falls below EUR 51,130. In the case of Art. 97a and Art. 99 — when the conditions for them are no longer met. In the case of voluntary registration, there are additional restrictions.
Can I terminate voluntary registration immediately?
No. In the case of optional registration (Art. 100), you may submit an application for deregistration no earlier than 12 months from the beginning of the calendar year following the year of registration, and only if there is currently no reason for mandatory registration.
What happens to the used tax credit upon deregistration?
As of the date of deregistration, it is assumed that you are making a delivery of the available assets for which you have used a tax credit — that is, you charge VAT on them and in practice repay the credit. For assets without a used credit (for example, a passenger car), VAT is not due.
What is the deregistration procedure?
You submit an application to the NRA with a stated reason and attached references (turnover by months, VOP, etc.). The NRA checks the reason and issues a deregistration act (within 7 days). The date of deregistration is the day the act is delivered to you.
Do I lose the right to a tax credit after deregistration?
Yes. After deregistration, you no longer charge VAT on your sales, but at the same time you lose the right to a tax credit for purchases of goods and services.
The conclusion
Deregistration is a real possibility, especially for small businesses, but it depends on your reason and requires correct references. Don't forget the obligation to return the tax credit on available assets in the last period.
Are you considering VAT deregistration? Explore Rodi Consult accounting services or is contact us — we will check the grounds and prepare the documents. Phone: +359 893 474 576.
This article is for informational purposes only and does not constitute tax advice. Please consult an accountant for your specific situation.
