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

Cancellation of an election to register for VAT in respect of the provision of holiday accommodation

Different rules apply to the cancellation of the election to register for holiday accommodation depending on when the property was acquired or developed.

Holiday accommodation acquired or developed on or after 1 July 2008

The cancellation of the election to register for Value-Added Tax (VAT) in respect of holiday accommodation may require an adjustment under the Capital Goods Scheme (CGS). This adjustment is based on the VAT claimed on the acquisition or development of the property.

Holiday accommodation acquired or developed before 1 July 2008

The cancellation of the election to register for Value-Added Tax (VAT) in respect of holiday accommodation will come within the rules set out below.

If you cancel the election within 10 years of first letting, you must pay a cancellation amount to Revenue. This amount is based on the tax deductible on the property. If you cancel your election after a short period of time, you will be liable to repay proportionately more VAT than if you cancel after longer periods.

How is the cancellation amount calculated?

The cancellation amount for properties acquired or developed prior to 1 July 2008 is calculated based on the following formula:

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 acquisition or development of the immovable property

and

B. is the number of full years it was let.