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

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

There are several reasons that could compel you to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your organization, there’s a alternation in the legal status of the business, you either join another vat group or disband your present vat group, or else you intend 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 legitimate candidate for vat deregistration.

You may also voluntarily step out of the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do so in case your input tax usually exceeds your output tax vat verification. 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 want to cancel your vat registration. Once you are deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from VAT you will have to contact your vat agent that should direct you about the exact process that must be followed so that you don’t find yourself 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? together with notice 700/1 among other notices in this range. This form will need your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you’ve applied for deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify in the event you stick to 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 the event you don’t get a reply then you should remind them. If hmrc is content 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 now have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain situations compel you to make an application for cancellation of the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department learn more here. If all your papers have been in order and if there are no mistakes in the deregistration form then you should be out of the vat system in a month of filing vat deregistration.