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

If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you still have to take into account vat and file your final vat return.

There are several reasons that may compel one to come out of the vat system. It is possible to make an application for deregistration of vat if your business has collapsed and you’ve 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 1 year, you sell your organization, there’s a change in the legal status of the business, you either join another vat group or disband your present 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 can make you a legitimate candidate for vat deregistration.

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

In order for you to deregister yourself from vat validation you will have to contact your vat agent that will direct you on the exact process that must be followed so that you don’t end up 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 require your vat registration number, business name and address, and may need you to tick the right reason as to why you have applied for deregistration in addition to offering 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 need 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 time period of 3 weeks. In case you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with the application then you will receive 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 debt after deregistration.

If certain circumstances compel you to make an application for cancellation of your 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 if there are no mistakes in the deregistration form you then should be out from the vat system in a month of filing for vat deregistration.