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Monday, 06 April 2020

Do I have to cancel my VAT number now that I no longer have outgoing transactions?

Stijn Vastmans

Stijn Vastmans

Partner
Ghent
Gert Vranckx

Gert Vranckx

Counsel
Hasselt

Your VAT number should not be cancelled if you, as a VAT payer, no longer carry out any VAT taxable activities for a certain period of time (e.g. due to a compulsory closure). In principle, you should only have your VAT number cancelled in the event of permanent cessation.

If you keep your VAT number, you still have to comply with your VAT reporting obligations (even if you do not have any incoming or outgoing transactions, the so-called nil returns).

It is also important to note that if you do not carry out any outgoing transactions subject to VAT for a long period of time, the VAT administration may ask you why your VAT number should be retained. In principle, an automatic stop of your VAT number is not possible.

If you have any questions on this subject, please contact the authors of this article.