Cancelling your VAT registration

  1. Overview
  2. Cancellation by elected persons
  3. Cancellation by farmers
  4. Cancellation of a holiday home election

Cancellation of a holiday home election

Where the holiday accommodation has been acquired or developed on or after 1 July 2008, then any cancellation will come within the rules of the Capital Goods Scheme.

Cancellation of a holiday home election pre 1 July 2008

Where the holiday accommodation has been acquired or developed before 1 July 2008, then any cancellation will come within the rules set out below. 

If you had elected to register for Value-Added Tax (VAT) in respect of your holiday home business and wish to cancel the election, you may have to pay a cancellation amount to Revenue.

If you cancel your election after a short period of time, you will normally be liable to repay proportionately more VAT than if you cancel after longer periods.

If a holiday home property is transferred before the ten years are up, the person to whom the property is transferred is liable for the cancellation amount, where applicable.

How is the cancellation amount calculated?

The cancellation amount is calculated on the basis of:

  • the amount of VAT deductible on the property used for the holiday lettings
  • the length of time for which the property was let before the cancellation.

The formula for calculating the cancellation amount is as follows:

A multiplied by (ten minus B) divided by ten

where,

A is the tax deductible (or which would have been deductible but for the operation of the transfer of business rules) on the immovable property

and

B is the number of full years it was let.