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Where Taxpayers and Advisers Meet

VAT De Register

Joined:Mon Aug 30, 2021 9:03 pm
VAT De Register

Postby GWPics » Mon Aug 30, 2021 10:04 pm

De registering for VAT.

I have been VAT registered since the early 90s as a self employed freelance photographer (not limited company).

Due to an industry that has been dramatically affected by the sheer volume of very cheap images online, (during the last decade many top photographers I personally know have had to change professions), and major illness, I have been slowly winding down my business.

I continue to repay VAT owed on all image sales, which amounts to very little these days. HMRC informed me regardless of low sales I could remain VAT registered, the choice is mine.

When I sold my last arsenal of s/h photo equipment approx 4 years ago I duly paid HMRC several thousand pounds from the sale. I then purchased new photo equipment to replace the sold items. Although enticing to claim a large sum of VAT back on new photo equipment purchased (4 years ago) I haven’t claimed any VAT back on any of the items. I don’t want to be left with a large VAT repayment on assets should I decide to de-register, especially when my image sales are so poor these days.

1. Is is permissible to purchase new equipment, not claim VAT, and later sell the equipment without paying VAT on the sale of such assets whilst still VAT registered?

2. I have a library of approx 25,000 thousand copyrighted slide images that I would like to keep and later sell. I have tried to sell the library but no one is interested, major image libraries (Getty Images, etc) are only interested in libraries containing hundreds of thousands of images, ideally one million plus. A very respected internationally renowned photo editor has tried to sell my library without luck. I have also tried leading auction houses. Could I class this image library asset of no value at this time for de-registering purposes?

Many thanks.

Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT De Register

Postby les35 » Tue Aug 31, 2021 9:28 am

1. no. if you sell items on which you chose not to claim VAT, output tax is still due. And you cannot use the second hand margin scheme either, since you were charged VAT.
2. you could consider the TOGC rules, since the library is, arguably, a business, albeit a small one.

Joined:Mon Aug 30, 2021 9:03 pm

Re: VAT De Register

Postby GWPics » Tue Aug 31, 2021 12:15 pm

Dear Les35,

Thank you for taking the time to reply and the information.

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