Know all about the vat deregistration process to cancel your vat number

If you are a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you need to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still have to take into account vat and file a final vat return.

There are several reasons that could compel one to leave the vat system. It is possible to make an application for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there’s a change in the legal status of your business, you can either join another vat group or disband your present vat group, or you want to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a valid candidate for vat deregistration.

You may also voluntarily step out of the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from you will need to contact your vat agent that will direct you about the exact process that must be followed in order that you do not end up making errors. You will need to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices in this range. This form will need your vat registration number, business name and address, and will need you to tick the right reason as to why you’ve applied for deregistration along with providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you don’t receive a reply then you should remind them. If hmrc is satisfied with the application then you will get a formal notice of vat cancellation on VAT35 form as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain circumstances compel you to make an application for cancellation of the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there are no mistakes in your deregistration form you then should be out from the vat system in a month of filing for vat deregistration.