A VAT registered person whose turnover will not exceeds N$200,000 in the following 12 month period may apply to be deregistered for VAT and should notify the Receiver of Revenue in writing. The deregistration will be effective from the last day of the tax period during which the Receiver of Revenue is satisfied with the notification.

Both compulsory and voluntary VAT registrations should be registered for at least two years before applying for deregistration. The VAT Act however provides that all regional and local authorities may not deregister for VAT, irrespective if their turnover is below N$200,000.
A registered person who disposes of their business or where the business activities have ceased should notify the Receiver of Revenue in writing, within 21 days of the sale or cessation of the business. The registered person should also inform the Receiver of Revenue of the date of the cessation of the business activities. The deregistration will only be effective when the Receiver of Revenue is satisfied that the registered person will not be conducting any taxable activity in the following 12 months.
Each VAT registered person who disposes of their business as a going concern sale should request the Receiver of Revenue to grant approval whether the sale of a business can be regarded as a going concern sale. The following requirements should be met for the request to be approved:
- Both the purchaser and seller should be VAT registered at the time of the transaction.

- The agreement should clearly indicate that the transaction is a going concern sale.

- The purchaser should continue with the same activities as the seller at the date of the transfer.
The Receiver of Revenue should notify you within 21 days of their decision that the request to deregister as well as the going concern sale has been approved or disapproved.
Each person whose VAT registration has been cancelled is required to declare output VAT on all goods on hand at date of deregistration on which an input tax deduction was allowed. The output VAT of the goods should be determined on the market value of the goods at the date of deregistration. Careful planning should therefore be done to determine the market value of the goods on hand as well as preventing a person having cash flow problems as a result of the output VAT being declared without disposing of the goods.
It is further very important that a registered person should notify the Receiver of Revenue should you wish to deregister for VAT because the Receiver of Revenue will only stop issuing VAT returns when informed of the deregistration. You can not assume that if your business activities have ceased that you are no longer required to submit VAT returns. Failure to submit nil VAT returns will be subject to a penalty of N$100 per day for each day that the return remains outstanding.
Taken the above facts into consideration, you should do detailed planning or consult someone that knows the law to assist you with the deregistration procedures.