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

If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you will still need to account for vat and file a final vat return.

There are many reasons that could compel you to come out of the vat system. You can apply for deregistration of vat in case your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your organization, there’s a change in the legal status of your business, you can either join another vat group or disband your existing vat group, or else you want to join the agricultural flat rate vat scheme. There are various other reasons that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a valid candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

In order for you to deregister yourself from https://vatvalidation.com you will need to contact your vat agent that should guide you on the exact process that must be followed in order that you don’t find yourself making errors. You will need to fill up 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 may need you to tick the right reason as to why you have requested deregistration in addition to 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. Additionally, you will have to specify in the event you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you will get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will be able 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 are in order and when there are no mistakes in the deregistration form then you should be out from the vat system in a month of filing for vat deregistration.